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*connectedthinking
Cities of the future - global competition, local leadership
Contents
Interview summaries 86
Part 1
Many of the challenges and opportunities In this report, the first from the network, we
that are coming to define the early part of set out to discover the principle challenges
the 21st century are at their most visible and trends that are influencing city leaders
in the cities in which a growing proportion in their strategies for delivering prosperous
of the worlds population now lives. and socially harmonious environments for
their citizens. In the course of our research,
In response to the importance of cities in we interviewed over 40 senior figures from
the global economy, cities all over the world. What emerges from
PricewaterhouseCoopers (PwC) established these interviews is a number of common
a City and Local Government Network in themes that all city leaders, despite their
2004. The Network aims to bring together specific circumstances, believe to be
city leaders so that they can share the setting the agenda for their cities.
experience, knowledge and insights that
they have gained and to develop their ideas This report takes those themes and
and strategies for the future. explores some of the strategic responses
required for effective leadership. We have
The City and Local Government analysed the constituent elements of the
city into a number of different asset groups,
Networks vision is: or capitals, that form the basis for
We need new perspectives of cities, their developing a strategic agenda that will take
dreams, knowledge, creativity, and a city forward. These capitals cover the
motivation in order to find new ways to people, knowledge, natural resources,
develop strategic city management. technical infrastructure, finances,
Therefore PwC will develop a new arena democratic and political aspects and
for dialogue with leaders in cities as a tool cultural values that a city embodies. Using
for strategic development and knowledge these capitals as a starting point, the report
sharing, resulting in added value for examines how different cities around the
people in cities, organisations or world are developing their understanding of
companies. each form of capital and assessing how
they can ensure that they develop the city
intelligence to make the best use of the
capitals they have and develop those which
may be in shorter supply.
Environmental
capital
Financial
capital
Technical
Culture and capital
leisure capital
Democratic capital
Executive summary 1
Cities of the future - global competition, local leadership
There are six different types of capital and dialogue, all need to be taken into
discussed in this report: account when establishing a strategic
plan for the future. In addition to these
Intellectual and social capital people
trends, city leaders also identified a
and knowledge;
number of significant challenges that have
Democratic capital participation and to be taken into account when creating a
consultation; strategic plan for the future.
Cultural capital values, behaviours
Challenges for:
and public expressions;
Intellectual and social capital
Environmental capital natural
Competing in the international knowledge
resources;
economy means ensuring that the
Technical capital man-made capital appropriate people, skills and capabilities
and infrastructure; and are developed, with city leaders
demonstrating that they understand how
Financial capital money and assets.
these qualities can be captured and
allowed to prosper.
Navigating into the future
Managing these identified capitals Democratic capital
effectively means taking a holistic City administrations need to improve their
approach, since each of the capitals accountability and the transparency of
depends on the others. their dialogue with citizens in order to
achieve the commitment of the whole city
The necessity of taking a holistic on its journey into the future.
approach is one of the themes to emerge
particularly strongly from the interviews Cultural and leisure capital
with city leaders. These city leaders are The competition among cities is intense,
keen to stand back from meeting the day and a strong city brand is a potent
to day demands and look to the future to weapon to maximise the visibility of a
see how their policies and strategies can citys qualities and allow it to differentiate
adapt to the dynamic social, economic itself from its competitors.
and political environments unfolding in
their cities. This process is like navigation Environmental capital
but navigation into the future. To make Environmental issues are near the top of
sure that cities reach their intended all cities agendas. As quality of life
destination they need to be aware of their becomes an important source of
starting position. This requires them to competitive advantage, cities have to
ask some important strategic questions, provide a clean, green and safe
identify their strengths and work towards environment for their citizens.
eliminating areas of weakness.
Technical capital
Once cities have identified where they are,
The demands on a citys infrastructure
they need to decide where they want to
change and expand constantly. Cities
be in the future. And to do this, they need
have to ensure that their physical and
to understand the significant trends that
technological assets can support the
will influence the direction in which the
changing needs of their citizens.
future unfolds.
Financial capital
These mega-trends cut across the
experience of all cities. The trends Growing demands on cities budgets,
towards individualism, for example, or the combined with diminishing revenue bases
effect that information and mean that cities need to be creative and
communications technology has had on flexible in their financial strategies and
speeding up the demand for information increasingly partner with the private sector.
2 Executive summary
Managing all of these capitals together Intellectual and social capital
requires strong leadership. City leaders Intellectual capital is identified by the city
need to develop a style of leadership that leaders as one of, if not the most,
is both highly consultative and directional. important assets that their cities possess.
They need to inspire and fulfil the dreams In the knowledge economy, it is the
and visions of the future that they share people in a city their skills, capabilities
with the people and organisations that and knowledge that can make a critical
their city comprises. Values are a critical difference to a citys ability to compete
element of good leadership. A value- successfully for investment.
based approach is one that city leaders
How do cities measure and map their
are increasingly adopting. Value-based
intellectual capital? Measuring intangible
leadership operates on the basis of a
assets is very difficult and the evidence
number of specific, shared values that are
suggests that, to date, very few cities
communicated clearly throughout an
have specific initiatives in place to do so.
organisation and used by the leaders to
However, from our interviews with city
guide their daily thoughts and actions.
leaders it is clear that many of them are
Managing capitals trying to develop policies that will make
their cities attractive to the skilled and
City governments are highly complex
entrepreneurial people that will help their
organisations. They need to respond to
cities to succeed in the economy of the
the demands of many different groups
21st century. One of the key drivers of a
and manage the allocation of resources
citys attractiveness is the extent to which
between different, and often competing,
people feel connected to one another, in
claims.
other words, the degree of social capital
Developing the capabilities to ensure that that exists.
cities manage their capitals effectively
Social capital is, again, hard to define but
means looking at the people, processes
expresses itself in the quality of informal
and property that they need to manage in
and formal relationships that characterise a
order to achieve their goals.
city. The degree of social capital in a city is
Cities need to make sure that they can linked closely to low levels of crime, to
measure the performance of each of educational achievement and to physical
these three categories. Without effective and mental health. Building a sense of
performance management, cities will not cohesion though is not easy. Many of the
be able to create a culture of continuous city leaders we spoke to cited the challenge
improvement. of ensuring that divisions and segregation
The pace and extent of change that cities were not allowed to develop between rich
have to cope with requires them to become and poor, and between different cultures.
particularly adept at programme and project Engaging all citizens is therefore a major
management. To do this, they need to challenge for cities.
create the right skills that can guide and
support change within the organisation. As Democratic capital
with any programme of substantial change, All of the city leaders that we interviewed in
effective risk management is an essential compiling this report stressed the central
tool. City governments have to identify and themes of collaboration and participation.
understand the risks that they face, gauge City governments like other political
their own appetite for risks and link their entities are faced with the challenge of
risk management policies to governance declining participation in the democratic
and compliance frameworks in an process. To renew the interest and activity
integrated way. of their citizens, cities have to develop ways
With the right frameworks and to make themselves more accountable,
competencies in place, cities can start to increase the transparency of their decision
manage the different assets they possess making and engage citizens directly in the
and begin to address the specific challenges creation of policies and decisions.
that each type of capital presents.
Executive summary 3
Cities of the future - global competition, local leadership
Cities need to develop new partnerships A city wishing to compete for attention in
with the different stakeholders they serve. the global market place needs to
New forms of partnership that go beyond undertake a wide-ranging audit of all the
simply listening to the views of others but qualities that differentiate it from others.
take action together are a vital part of this. Once these qualities are understood, they
Citizens become more than a voter or need to be developed and promoted to
customer they are engaged as co- the type of people that the city wishes to
producers in the policies that will shape attract. The experience economy is an
the citys future. increasingly important concept in
Channels for interaction are also understanding what makes one city
expanding and, most significantly, the different to another. It goes beyond simply
Internet is providing a new forum for real the institutions (cultural or otherwise) a
interaction. More than simply providing city offers. The experience economy
information, the Internet provides a consists of the whole range of
platform for genuine dialogue between associations and emotions that people
cities and citizens in a way that traditional experience when they spend time or
channels cannot easily accommodate. consider spending time in a particular
place. Creativity the bedrock of the
Developing accountability is a key aspect of
experience economy cannot be bought
the strategies that cities are adopting to
in. Instead, city planners have to tease
engage their citizens. They are doing this by
out their citys unique qualities, and invest
disclosing their own targets and recording
in nurturing and developing them.
their performance against them; by creating
collaborative forums with specific interest There is no single plan for creating a
groups (e.g. business) and by arranging their successful city brand. However, there are
services around the needs of their citizens. several strategies available that can help
cities to draw attention to their qualities. For
Cultural and leisure capital cities wishing to embark on this journey,
A city comprises a complex array of there are some critical questions to ask.
attributes that provide it with its unique They need to consider what will attract the
identity. Cities that have succeeded in attention of the world to their city and, more
attracting visitors, residents and importantly, what will keep it there?
businesses do so by creating a city brand
Environmental capital
that encapsulates the qualities that the
city offers and generates powerful and The quality of life that a city offers is a
memorable positive associations. fundamental aspect of its ability to
prosper. Offering citizens a clean, green,
In building a brand, a city has to be aware
safe and attractive environment is high on
of how it is seen by the outside world. What
the list of priorities for city leaders.
are the cultural qualities it is seen to have?
What is the lifestyle associated with the Balancing economic development with
city? Strategies designed to develop cultural environmental impact is a significant
capital need to understand how they are challenge. Pollution, in all its forms, is a
seen now and, from that understanding, major problem for many cities and so city
develop the steps they need to take to governments have to develop policies that
move their city forward to the experience incorporate economic and environmental
that they wish to offer. Various different considerations.
strategic directions are available. Global Developing policies for sustainable
attractions can put a city on the map (such development necessitates a joined-up
as the Guggenheim Gallery in Bilbao) and a approach to decision making. This means
sporting or cultural event can act as a that environmental considerations are an
magnet (e.g. the Barcelona Olympics that integral part of policy development across
propelled the city on to the world stage) to the spectrum of city government. Planning,
draw the worlds attention. But a city cannot transport, finance and economic policies all
rely only on single attractions or events; it need to reflect the environmental goals that
has to use these as a starting point for the a city sets for itself.
beginning of a much longer journey.
4 Executive summary
Citizens, too, need to be engaged in the pressure from a host of competing
development and implementation of demands. At the same time, citizens
environmental policies and be encouraged demand better services but are reluctant
to take responsibility for the quality of the to pay more for them. The familiar
environment in which they live. Engaging dilemma of having to do more with less is
citizens is more than important; it is a one that all cities are facing.
prerequisite for success in developing In order to respond to this challenge, cities
sustainable environmental improvements. have to do a number of things. They have to
establish accounting policies and analyses
Technical capital
that allow them to understand their financial
The enormous complexity of cities today position, and introduce financial disciplines
means that the demands on their and performance management
infrastructure are relentlessly challenging. methodologies based on these findings.
Not only are the basic needs of transport,
Cities need to adopt an entrepreneurial
housing, water and energy under strain, but
approach to the way that they finance and
new demands for effective communication
provide services. They need to understand
make the supply of, for example,
the true costs of the services and products
broadband and electronic networks an
that they supply in order to evaluate
increasingly important element of
whether alternative provision (such as
infrastructure provision.
shared services) may be more efficient.
To cope with these challenges, many cities Some cities may be more effective in
are adopting an integrated approach to certain areas than others. They should seek
their urban planning. Rather than planning opportunities to trade with other cities
for the separate provision of transport and selling those services that they perform
housing, for example, a more holistic view most efficiently and buying in those where it
is being adopted that seeks to measure the makes financial sense to do so.
combined impacts of different types of
New forms of partnership are also critical.
development. This integrated approach also
Many city authorities are discovering the
means that cities are looking to establish
advantages of working with the private
partnerships and new forms of
sector to fund the provision of services
collaboration that allow them to deliver
and infrastructure in innovative ways.
infrastructure requirements in new ways.
Public-private partnerships to deliver Taken together, the demands on a citys
infrastructure are now a common feature of finances call for planning that sets out the
many cities, and allow city governments to goals and tasks that the city wishes to
share the risks of provision with partners achieve, and establishes how the funding
from the private sector. and investment they require can be most
effectively put in place. By consulting and
The pressure on cities to operate more
examining the experience of others, they
efficiently and at the same time improve
will be able to begin developing the
their services to citizens is increasingly
financial structures that will allow them to
responded to by the adoption of techno-
meet their present and future needs.
logical solutions. Improving processes and
workflows within the city administration Unique cities, common challenges
itself is a key focus for many cities. Using
Our conversations with city leaders from
new technology to improve
all over the world show that, while each
communications and the flow of data within
city has its own unique identity and
an organisation is made possible through
circumstances, they also face numerous
the application of e-Government solutions
common challenges and opportunities.
that are connecting departments and
cutting across the traditional boundaries to A wide range of skills and capabilities are
allow more effective collaboration, resulting needed to respond to those challenges,
in better service for citizens. and we hope that this report will help city
leaders and others to develop their own
Financial capital responses and assist them in their efforts to
Cities face a number of common financial ensure the prosperity of their own cities.
challenges. Budgets are under intense
Executive summary 5
6
Cities of the future
Chapter 1
New perspectives on the city bring together this wealth of knowledge and
experience. This Cities of the future global
As the 21st century unfolds, and we move
competition, local leadership document is
ever faster towards global economic
the networks first publication. The aim of
integration, the role of major cities, in
the project is to identify the most important
driving forward growth, prosperity and
trends and challenges affecting major cities
social wellbeing is changing significantly.
across the globe.
Cities today are dense networks of
interchanging investments, information, Since the autumn of 2004 we have
goods and people as well as centres of interviewed over 40 senior political (mayors)
innovation and knowledge management. and managerial leaders (city managers)
from a range of cities. This document aims
There are approximately 400 cities in the
to bring together the common issues and
world each of which has more than 1
challenges facing these cities and share
million citizens. The largest metropolitan
how political leaders and managers
area, Tokyo, has 28 million citizens and
interpret and respond to these issues, both
New York City has over 20 million.
today and in their planning for the future.
According to the 2004 United Nations
We have tried to link the insights we have
HABITAT report, 60% of the worlds
gained to the visions and strategies
population will live in a city by 2030.
required to help cities compete on both the
Determining what is a big and what is a global and local stage.
small city depends on where you are in
We recognise that political leaders and
the world. A city with 300,000 citizens is,
city managers require a new approach to
for some, a big city, while for others its
networks and arenas for dialogue with
small. The question of scale is relative and
citizens, companies and organisations so
so, in our terminology, a city is simply one
that strategic growth and development
that has a significant impact on the
can be achieved on a sustainable basis.
economy and development of a nation.
In order to find relevant ideas for city leaders,
Fundamentally, we also need to ask what a
we have explored the key issues facing
city is. Its a place to live, which means
leaders of the future. We have developed the
somewhere to grow, to develop and to
concept of managing capitals, to examine
enjoy. But its also a place to work, to
and explain the wide range of economic,
educate, to socialise and to relax. Our focus
social, practical and managerial issues facing
is, of course, on these aspects, but history
global cities. The term capital refers to the
teaches us that the construction of many
range of strategic assets and resources
old cities was motivated by fear and the
within a city. These are:
search for protection. All these trends
influence the development of a modern city.
Capital Focus
Cities aim to provide a warm atmosphere,
welcoming people to stay, enjoy themselves Intellectual People and knowledge
and in doing so spend their money. At the and social capital resource
same time social disunity, crime and poverty
Democratic Transparency,
cannot be ignored. These factors motivate capital participation and
the ongoing struggle for the city that patnerships
improves peoples lives and meets their
Cultural and Values, behaviours
needs in all areas of life.
leisure and public
capital expressions
The cities of the future project
Environmental Natural resources
PwC has strong connections with cities and capital
local governments around the world from
Technical capital Man-made capital,
Sweden to Australia, and from Japan to infrastructure
Brazil. In 2004 the Cities and Local
Government Network was established to Financial capital Money and assets
Environmental
capital
Financial
capital
Technical
Culture and capital
leisure capital
Democratic capital
This document begins with a chapter on money or profit and the business or
strategic development and leadership, services they provide are the means by
setting out the key challenges and which to generate profit. In a public sector
opportunities for the future. We then organisation, e.g. a city authority, the goal
examine each of the capitals in more depth, is to provide services and the means are
presenting examples of good practice from provided by citizens taxes. It is therefore
the cities we have interviewed. important to take a multi-dimensional
approach to understanding what value
The basis for our approach is the and benefits customers and citizens
difference between private and public derive from their investment in public
sector organisations. As figure 3 below services.
shows, the goals in private companies are
Business Money
Goal
Profit in service Profit in , $ or
and benefits
In order to clarify some of the major issues To be a facilitator, and provider of new
Strategic question: that cities face we have, throughout the arenas for a creative professional-
document, posed a number of strategic public dialogue between city
How does your city develop a new
questions see opposite for an example. government, business professionals
integrated strategic approach across
Their aim is to direct a citys attention to and wider civic society;
all its capital bases (resources) that
key issues and to instigate a debate and
will create a better, more sustainable Create new content and new meaning
exchange of information about the many
and competitive city in the future? for terms like innovation, intelligence,
possible responses to the common
challenges to which such questions give transparency, trust, corporate
rise. In our analysis and commentary, we governance and government;
have drawn on our extensive experience as
Use the PwC City and Local
advisers to many different cities all over the
Government Network as a prototype
world. We have also made sure that the
designed to increase strategic social
perceptions and insights of those in the hot
capital for city development and
seat the mayors and city managers that
leadership, and to facilitate mutual
are tasked with implementing strategies
learning between city leaders; and
are central to this publication.
Highlight the importance of local and
City and Local Government global connections between city
leaders in the world.
Network the long term vision
This publication is the first milestone in We hope that leaders in cities around the
our work to take forward and develop the world will find this report interesting and
global PwC Cities and Local Government valuable for their tasks and commitments
Network. Our vision for the future is: in fulfilling the vision of developing their
city as an even greater one in the future.
We need new perspectives on cities and
their citizens, their dreams, knowledge,
creativity, and motivation in order to find
Acknowledgements
new ways to develop strategic city We especially want to thank the following
management. Therefore PwC will develop people for giving us energy and
a new arena for dialogue with leaders in inspiration to try to see around the
cities as a tool for strategic development corner in the area of strategic
and knowledge sharing, resulting in added development and leadership relating to
value for people in cities, organisations or challenges that cities face in the future:
companies.
Each of the interviewees who so
Our goal is to: generously gave time and ideas to this
project;
Create an informal and fellowship-
based network among city leaders with Leif Edvinsson, the worlds first Professor
the motivation to develop new thoughts of Intellectual Capital, University of Lund.
for cities; In 1998, Professor Edvinsson received
the The Global Brain of the Year award
Build the next level of public trust into
from Brain Trust in Great Britain for his
cities of the future, together with
research and development; and
political leadership and professional
management; Robert and Janet Denhardt, Professors
at Arizona State University, Department
Help to create excellence in the cities,
of Public Affairs in Phoenix, Arizona,
and their services and businesses;
USA.
Chapter 2
Cities
The way
of the
to the
future
future in cities 13
Cities of the future - global competition, local leadership
Navigating into the future the city? Finally there is route and speed:
how quickly and by which path will we
requires an open mind and reach our destination? To create a vision
leadership and a dream takes time, but there is no
A cynical attitude among some time to wait. The journey to the future has
experienced leaders is that the future is already started.
simply a recycling of old ideas and
concepts under different and new names. The navigation process depends on how
This philosophy and approach says that we consider our position today and what
the future is behind us. There is nothing kind of approach we will use to reach our
new to come, and no expectation of real future vision. Below are four different
change in the future. approaches to navigating in relation to the
surrounding world:
Change is real and the demands of the
future are pressing on us all. We need Inactive No interpretation of trends
leaders with the vision and the dreams
that will empower and inspire people. Reactive Responding to the
Rapidly changing modern societies are agenda of others
creating a need for strategic development
Proactive Make detailed plans for
that offers constant innovation and a
renewal of processes and peoples the future and set trends
attitudes. It is important that a citys Interactive Shape and respond to
leaders are able to see things in a new changing trends over time
way. Strategic social analysis and
intelligence involves learning from the
past but, most importantly, understanding The leaders of tomorrow need the right
the likely direction of the future. Social approach to the journey as they try to
intelligence is an area of vital importance understand and adapt their course
related to what we call city intelligence. according to trends forecast for the future.
When conditions change, leaders must
An intelligent community has to be able to respond immediately. Is it time to sail
see what happens through time, that is against the wind for a while, but then
analyse, reach conclusions and define its change again? During this process the
present reality. They need to develop their leader needs to develop a mental GPS
strengths and eliminate their weaknesses. based on intelligence gathered from a
That is how we create visions, ideas, and wide variety of sources. Knowledge
a strategy; and consequently how we navigation is one relevant term in this
create and prepare for the future. It is context.
essential that a municipality has the
power to implement all this. Some city This way of working is possible only if
governments stay in the analytical phase there is a clear-cut appreciation of the
and never move on to formulating and direction to take which, in turn, requires
implementing their visions and dreams. a strong vision linked to committed
leadership and a well-managed
Governments leading a city towards an organisation. To achieve this, leaders have
uncertain future are like the navigators of a to analyse both from the outside in (global
ship. The crew and passengers comprise trends and tendencies) and from the
their citizens, employees and customers. In inside out (visions for the city and its
this way, navigation is very similar to the organisation).
leadership of a large organisation or a city.
The first concern is strategic position,
where are we right now? The next
consideration is destination, where are we
going? What are our visions or dreams for
Private
University Supporting role
Renewal through sector
prototypes and attitude
City
government
Information Data
Knowledge Creativity &
innovation
Experience Vision & dreams
City of Oslo The blue and reduced the number of school leavers
green city by improving the social standing of
teachers and increasing their
City of Oslo towards 2020 is participation in school administration
simultaneously the environmental city,
the cultural city and the knowledge Melbourne Planning for the
city. The environmental city is about future
maintaining City of Oslos "blue-green
distinctiveness arising from its City Plan 2010 sets out Melbourne City
proximity to both the fjord and the Council's vision for the next 10 years.
forest. The knowledge city is about Leaders wish to see a thriving and
taking advantage of and developing sustainable city and the council is
the lead we already have on the working with all its stakeholders to realise
competition as one of the best- this vision and simultaneously pursue:
educated people in Europe. The economic prosperity;
cultural city points forward. Our aim is
social equity; and
to become Europes cultural capital in
2011, and a grand development is environmental quality.
taking place in the form of cultural
Melbourne has already made many
institutions in the city ie the building of
positive changes to the natural and
a new Opera house."
physical environment, to the City's
culture, to the way it does business,
Barcelona City of knowledge
and the way it values the community.
The vision of Barcelona in 2015 is that The Council has adopted a set of
of a city characterised by the following: strategic directions to realise this
An economy based on the vision. These directions are organised
development of a value-added and around four themes:
innovative culture depending on the
growth of new industries: audiovisuals, Connection and accessibility;
design, etc. New uses of transport Innovation and business vitality;
based on the improvement of mobility.
Inclusiveness and engagement; and
An education system that can
guarantee proper training for our Environmental responsibility.
human resources, having notably
RAGUSA
Municipal intelligence
Intelligent Leadership engaged
with specific roles
Organised intelligence Mapping of IC
Government engagement Good story to create spirit and
The spirit/homogeneity
homogeneity
Networking arena and activities
Virtual/real city
Source: Radovanovic, D. (2004)
The word leadership, which has its origin Good leaders inspire and empower the
in leading and synonymous with guide people around them by creating and
and standard bearer, speaks for itself. developing an energising culture. The
Other definitions of leadership can be: paradigm of the future requires leaders
that can show leadership in a number of
An ability to realise an intention or
different ways.
vision and to retain it, to turn that
which was just an idea into reality; These include:
Chief/Decision maker
Servant/Coach
Chapter 3
Managing capitals
This chapter of our report sets out some of the key
challenges that city governments face in anticipating and
responding to the needs and demands of their
communities. To be able to address these challenges, city
governments need to operate as efficiently and effectively
as possible, embracing modern management practices
and promoting a culture that secures excellence in all
areas of activity while continuously seeking to improve.
Managing capitals 27
Cities of the future - global competition, local leadership
invited back to develop a competency Performance at all costs Business and people
framework for the Council in which we development aligned
consulted widely with employees across
the Council.
Low interest Caring employer
Outcome: We are in the process
implementing our Competency Frame- Just a job A job for life
work in three pilot sites across the Council Low job satisfaction Seniority over performance
in areas including Performance Low High
Management and Recruitment. Our wider People focus
recommendations are also being
implemented as part of the Councils Figure 7: Approaches to people management
recovery programme.
28 Managing capitals
Property Strong business processes including
supply chain management, customer Case study - UK Municipal
Land and buildings are arguably the most relationship management, financial
visible and identifiable aspect of front-line management, performance
Authority
services and a major influence on how management, data management, Over recent years this authority has
city governments are perceived. They programme management and risk taken a stepped approach to improving
provide the facilities for conducting management; and its buildings. This has included:
business and are essential for supporting Reorganising corporate governance
Sourcing the right expertise and
the technology, business processes and arrangements to create a senior-
capacity to deal with both the strategic
cultural change required to raise a city officer steering group responsible for
and day-to-day management.
governments performance. property assets and investment
They are also inextricably linked with city
Processes strategy;
regeneration.
City governments need efficient and Outsourcing property services to the
Poor property asset management means: effective processes in place to secure an private sector;
appropriate return on their investment in Challenging the rationale of
Significant wasted resources annual
people and property. There are a number continuing to own property, resulting
investment and expenditure on
of particular areas where city in a significant disposal programme;
property is a significant cost for city
governments should aim to have in place and
governments where land prices are
best-in-class processes to get the most A property improvement programme
relatively high;
out of their assets and to drive and linked to community regeneration,
Non-compliance with buildings and support a culture of continuous which includes bringing many services
workplace statutory and regulatory improvement: together under one roof and investing
codes such as health and safety; Programme and project management in modern office workspace that
(PPM); supports new ways of working.
Disruption to service delivery if the
Performance management;
physical infrastructure fails or does not
support business processes; and Procurement;
Risk management; and
Staff dissatisfaction leading to
Reputation and brand management.
problems with staff retention and
recruitment.
Managing capitals 29
Cities of the future - global competition, local leadership
30 Managing capitals
Performance management Successful performance management
requires: Performance management -
Effective performance management lies at
Clear, well communicated and well NYC
the heart of all good councils and
underpins the delivery of improved local understood priorities to set common One of the most successful examples
services. If you dont know how good or goals for all to work to; of performance management systems
bad you are, you cant identify the scope Alignment of human, financial and seen in the public sector is Comstat,
for improvement. The changing climate of physical resources to those priorities; a data-driven approach to measuring
municipal government means that the crime and police performance in
A focused set of performance tackling it. Comstats use in New York
management of performance now requires
indicators, and realistic but challenging has been seen as a vital element of
a more sophisticated approach one that
targets to motivate staff to deliver the substantial reduction in crime that
looks to measure outcomes rather than
improvements; has transformed New York from a
inputs, and one that is readily
communicated to all. Clear accountability and responsibility; major crime centre to one of
Americas safest cities.
Regular review of performance; and
Clear actions to improve performance Comstat was introduced to New York
where needed. by Commissioner William Bratton in
1994. The system records every
Figure 8 below describes a framework of
instance of crime, from low-level to
performance management that draws
serious, in every police district and
together these key elements into a cycle
once a week the heads of each
of continuous service improvement.
precinct are asked to explain their
performance in front of their fellow
senior officers. When it was first
introduced, Comstat met with
significant resistance from some
officers, but has now gained wide
acceptance as a powerful tool for
Strategy and measuring and improving
objectives performance. Comstats success in
New York has been replicated by
Take Indicators
action forces throughout the United States.
What do we and targets
want to achieve?
How will we know when
we have achieved it?
Evaluate What are we going to do to
performance achieve it? Roles and
and responsibilities
sustainability How do we improve our
performance?
Progress Embed
tracking processes
Managing capitals 31
Cities of the future - global competition, local leadership
.F
ind
Phase II
Getting the
contracts right II.
Ge
in the first place t the oney
m
Strategic sourcing
Identify potential suppliers
32 Managing capitals
Risk management when deployed independently and in
isolation of other key organisational
In dealing with the change agendas facing
functions, are quite simply less effective
cities today, effective management of risk
than they could or should be.
can help cities demonstrate customer
service excellence and compliance with A fully-integrated approach helps to form
central government guidelines, whilst at the an ethical and operational backbone, and
same time achieving wider city objectives. ensures better horizon scanning of
emerging risks, proper probity of risks
In the past, risk management,
with partners and contractors and full
organisational governance and compliance
assessment of risks to the public. The
have generally been viewed and managed
framework for risk integrates risk,
as discrete areas. However, this approach
governance and compliance with controls,
often results in accountability and
standards and legislation and is illustrated
communication gaps, as well as confusion.
in figure 10 below:
City-wide risk management approaches
Emerging
standards
E
an me
gy d n rg
e olo e Setting objectives, tone,
ec r
n
in req
w
g u ir
h
accountabilities.
sta eme
dt
nda nts
Ethical culture
Managing capitals 33
Cities of the future - global competition, local leadership
Reputational
management
Policy development and performance improvement
Outcome
- Reception +
Communications
and stakeholder
engagement
Start
- Reality +
34 Managing capitals
aspect is linked to the city governments Supported by a tested plan for crises.
desire for self-improvement. Case study - Amsterdam
It needs to be seen as a process, not an Mistakes to avoid in city reputation
management include: I AMsterdam Building a brand
event. This balance between these
aspects is analogous to the balance I AMsterdam is the motto that the
Regarding reputation (or city has created to express its vision
between proactive and reactive
communications or PR) as a superficial, of the city and its people. The city
communications.
cosmetic, short-term or tactical activity; has developed a branding strategy
City authorities will know of the mounting that puts people at its centre and
Allowing words or claims to get ahead
research evidence that there are emphasizes the attractions of
of reality creating mismatch which
demonstrable links between residents Amsterdam as a place to live, to
undermines the citys credibility;
feeling well informed by their city work, to invest and visit.
government, and higher levels of Allowing gaps to develop between
customer satisfaction. The principal stakeholder expectation, and actual The campaign seeks to bring out the
drivers of positive perceptions among performance; and diversity and innovation of
residents are street-scene services which Amsterdams people and stress how
they can see; good communication and Failing to identify key stakeholders, and these qualities manifest themselves in
explanation; and whether they feel the thus failing to communicate with them. the creative, intellectual and cultural
authority delivers value for money. outputs readily associated with the
A reputation arrives on foot, but leaves city, as well as the technical prowess
Good practice in City authority reputation by racehorse. (Chris Cramer, CNN) that the city demonstrates in its
management requires it to be: infrastructural innovations such as
Citys should be mindful that just one
the way that it handles its water and
Led by real behaviour and actual incident, or the actions of one employee,
its status as a centre for hi-
performance, part of DNA, not by can undo years of effort spent carefully
technology and research.
words and claims; building a good reputation.
The campaign uses the people of
Within a framework of communications Amsterdam in the role of
and risk management strategies; I AMbassadors to personalise the
Supported by informed staff acting as citys promotion and connect visitors
ambassadors; to the experience of real citizens,
living, working and playing in the city.
Long-term, strategic in outlook, and
sponsored by top management; Why 'I AMsterdam'?
Managing capitals 35
Cities of the future
Chapter 4
Intellectual
capital
Human Organisational
capital capital
There is a strong correlation between high The welfare challenge and social
levels of social capital and positive connectivity
experiences of: Levels of voluntary participation in
Education and employment; community activities and in local democracy
Housing, transport and urban design; have fallen in many modern cities. In general
people view themselves as customers much
Crime and community safety (i.e.
more than shapers of society, a view
citizens makes people feel involved in the Increased migration means that many
decision-making process and promotes immigrants leave valuable connections
increased responsibility for local services behind and therefore experience isolation
and the local environment. Increased when they first arrive in a new country.
participation often leads to increased levels Migrant groups often minimise their loss of
of collective action. It has been proven that social capital by choosing to congregate
high levels of social capital lower the gap together in enclaves. Most cities display
between the haves and have nots in this pattern of segregation in terms of
society (Putnam, 2005). migrant settlements, which ultimately leads
to isolation and poor interaction between
Building social capital does not require
the different communities. It is essential for
significant financial investment on the part
city governments to provide new ways of
of city governments. There are many
connecting people in a diverse society in
examples of neighbourhood actions
order to develop democracy by increasing
where cities play the role of facilitator
the social capital of citizens and celebrating
Strategic questions: rather than the provider of services. For
the diversity of modern multicultural cities.
instance, in the city of Phoenix, Arizona,
How can citizens be engaged in the
there are around 900 neighbourhood
development of the city? Has your city Organisational capital
groups working on different social issues.
developed an inclusive plan that
The city of Vancouver has won a United Organisational capital includes research
addresses the needs of all citizens?
Nations award for Innovation in Public and development programmes, systems
Service for its Neighbourhood Integrated of education, fiscal policies, public
Service Team that helps Vancouver procurement policies, and management
residents solve difficult issues in their tools.
neighbourhood. The program involves
more than 200 city staff within 16 teams More importantly, it refers to
representing different areas of the city. organisational culture and leadership. In
They work with residents to help solve the context of a city, organisational culture
problems with buildings, garbage, noise illustrates the citys image and core
or illegal activity. The City Manager of values. Having a positive and attractive
Vancouver, Judy Rogers, describes it as image and set of values is widely
an ideal way to integrated citizens and recognised as a key factor for prosperity.
staff to come together to problem solve. One city that has attempted to change
The negative side of social capital is that radically its organisation and process is
it can lead to insular behaviour and lower Barcelona. Using ICT, the city has designed
levels of tolerance for other groups and its services around the needs of its citizens
communities. To counter this, city leaders rather than the organisational imperatives of
need to promote tolerance and openness the administration itself. This means that,
and facilitate integration. As Catarina for example, city services and information
Dahlf, Acting CEO of Gothenburg says: are available through one web portal that
We need to counteract segregation of connects citizens and government together.
people from other countries and cultures Technology has been used to engineer a
that come to, or are already established, new form of social fabric in the city, one
in the city. Developing social capital can that puts citizens needs above all others.
help to tackle problems of unemployment Other cities are also using IT in this way.
and other social problems and increase Liverpool City Council has embarked on a
prosperity. Research has shown that a considerable programme of networking that
lower level of social capital among links citizens to information and services
immigrant groups is one of the reasons for through one portal encouraging the citys
higher unemployment. The social unrest in citizens to interact with the city government
France during the autumn of 2005 could to provide feedback and establish a
be linked to the French governments lack genuine dialogue with city leaders.
of investment in building social capital in
certain communities.
countries and a lack of the innovation that Nations Public Service Awards to draw
Innovation - Frankfurt is necessary to create a high-quality attention to public services that
One city which has explicitly knowledge economy. demonstrate the development of innovative
acknowledged the role of innovation practices and improvement of efficiency and
The balance and spread of economic
in developing its economy and effectiveness. The awards also highlight
power between cities in the knowledge
infrastructure is Frankfurt. Petra Roth, best practice in recruitment and retention
economy can be achieved by
the Mayor of Frankfurt, explains: within public sector bodies. The awards
emphasising and sustaining the citys
were made for the first time in 2003,
uniqueness and by constantly innovating
Frankfurt has increasingly focusing on best practices and innovations
cities intellectual capital.
distinguished itself as a scientific in the public sector all over the world.
centre. Enormous investments into
the development of university and Innovation capital Conclusion
technical college made by the Increased global competition between In an interview conducted for this report the
government of Hesse, have enabled a cities has increased the focus on city manager of Malm, Sweden said: It is
leap in quality in the scientific- developing and maintaining intellectual possible to make a turnaround from being
technological infrastructure. The capital. No city can afford to neglect the an industrial city on a downward trend to
ongoing improvement in the quality of revitalisation and innovation of its most becoming a blossoming city. But to do
job offers increases the attractiveness essential capital. The need for renewal is this, cities need to attract the right kind of
of the location for enterprises brought into sharper focus with economic people the right mix of intellectual and
operating in the science-oriented restructuring and the transition from social capital to ensure success. To
growth industries. Through its new industrial to knowledge-based economies. sustain and develop intellectual and human
innovation centre, Frankfurt enjoys a Creativity and innovation create capital cities must adapt and prepare for
worldwide reputation in competitive advantage. Due to their size the future. Global economic pressures have
biotechnology; by settling specific and diversity, big cities are one of the increased competition and, therefore, the
areas of the pharmaceutical industry, main sources of innovation. competition to attract and retain the right
Frankfurt is on the way to re- skills and people.
The city of Vancouver understands the
obtaining its former position in the
significant connection between innovation To compete in a rapidly changing global
production of pharmaceuticals.
capital and human capital. The citys economy, cities have to understand the
motto is: Empowered by innovation City resources that they will need in the future.
Manager, Judy Rogers, explains their In an economic environment that is
success: Vancouver recruits outstanding increasingly dependent on knowledge,
people and lets them do their jobs. They intellectual and social capitals are likely to
are continually offered jobs by other cities be among the most significant assets that
for much more money few leave, annual a city possesses. They will need
turnover is less than 3%. strategies to help them develop, attract
There are numerous examples from history and retain those assets and in doing so
that prove that the right combination of ensure that all citizens feel engaged and
physical and intellectual capital helps cities enthused by the city and seek to apply
to become wealthy and powerful. their own best efforts to its successful
Nevertheless, many cities have failed to development as a place to work and live.
capitalise by not adapting to changes and It is essential that city leaders effectively
allowing their intellectual capital creative and efficiently manage all capitals that
and entrepreneurial people to leave. support intellectual capital in order to
In recognition of the important and global create sustainable development and a
nature of the value of intellectual capital the good quality of life in cities.
United Nations Department of Economic
and Social Affairs established the United
Economy
Interaction
Major trend 1: Major trend 3:
Transparency Partnership
The city
on
Int
cti
era
era
cti
Int
on
Society Politics
Major trend 2:
Participation
Pros
perity ntrol
through optimising democratic co
Figure 13: Interactions between politics, society and economy with the three major
trends to optimise democratic capital
Trend 1: The push for greater that permits anyone to ask him a direct
question about any topic of concern and of
transparency course permits thousands of listeners to
The push for transparency comes from a hear the explanation of the issue and the
number of different sources. The answer to the question.
information age, powered by the
Internet, has created unparalleled access The Mayor of Yokohama believes sharing
to information about almost everything information is an important part of the
and increasingly transparency is a vital process of establishing credibility and
building block of trust between individuals ensuring constructive dialogue.
and organisations. Trust and Using ICT as a platform for greater
accountability are inextricably linked and transparency is a strategy that is being
so the creation and maintenance of trust adopted by cities around the world in
is a key challenge for cities that want to response to citizens demands for more
be accountable to their citizens, the information about the performance of the
economy and society. Transparency is officials they elect to run their cities and
dependent on two-way communication provide public services. More than simply
flows between city governments and the providing information, cities are using
people who live and work in those cities. technology to enhance their accountability
Trust-based relationships are more effective by giving citizens direct access to officials
and efficient. To create trust, the and creating dialogue with them.
accountable city government provides its An accountable state reflects and
citizens and other stakeholders with accommodates citizens needs and
information about financial results, and also concerns by using methods such as e-
about its plans and goals, setting out communication based complaint
decisions, how they are taken, and the management, opinion research, surveys of
results achieved good as well as bad. An minority subgroups. However, dialogue
accountable government reports regularly with citizens is not enough: governments
and publicly about its performance. must respond to citizens input. Local
Yokohama, Japan, is developing a policy of governments have to accept a new
disclosure that aims to keep citizens and relationship which sees information
other stakeholders informed of the citys flowing from departments to citizens and
finances and its performance in meeting then back again to reinforce the strategic
budgetary goals. According to the Mayor, or leadership role of government.
Hiroshi Nakada: It is important that the Rather than being organised from the point
public administration and citizen share of the view of the administration and its
information. By doing so, the public requirements, the citizens and their needs
administration will gain credibility and make become the organising principle for services
it possible to have constructive discussions and information. Citizen-centricity is a key
with citizens. We are trying to share trend in the development of transparent and
information with citizens by announcing accountable city government. It is a trend
financial conditions (which are not always that cities all over the world are responding
sound) in a way that it easy for them to to. In Morn, Buenos Aires, Argentina, new
understand. This includes disclosure about institutional arrangements are helping the
the citys indebtedness, and the financial city to tackle problems in a collective
forecasts for the next five years the first undertaking with its citizens, as the Mayor,
such disclosure in Japan. Martin Sabbatella, describes: The residents
Trust-based relationships are supported by of Morn have supported a process of
strong two-way communication processes transformation that grants them greater
that permit citizens to both receive and participation in public matters. These factors
access information and enable them to converge on the need for an extensive
present their views and hear the views of political and institutional reform that
the other citizens of the communities in guarantees total transparency, both for the
which they live. The Mayor of New York residents of Morn and for those that do
holds a weekly phone-in radio programme business in the city.
During the past 20 years cultural planning The specialisation strategy development
in cities and regions has become a big of an attractive or specific industry profile
business all over the world. Today, cities based on, for example ICT innovation
are referred to as branded goods, in stark (Adelaide), finance and film (Toronto,
contrast to the more modest promotion of Cannes), festivals (the carnivals in Trinidad
earlier times. However, transferring a and Rio de Janeiro)
theory wholesale from consumer goods to
cities can be complicated. An easier form The generator/dynamo strategy
of branding is to base it on a places development of a profiled local
unique characteristics or advantages. As specialisation, preferably with possibilities
Martus Tavares, Secretary for Economy for governmental investment and support,
and Planning of the State of So Paulo for example research parks, IT or biotech
suggests, city branding requires a environments, or headquarter complexes
different strategy to its consumer (e.g. clusters such as Silicon Valley or
equivalent, covering a wider range of France - national strategy for seven
potential customers; The key external industry clusters).
challenge is marketing the city, promoting
a positive image to attract and retain
talented people, existing business and
investment opportunities; and tourists.
In addition, some cities use large one-off Another approach the generator strategy
events, such as the summer/winter is to initiate co-operation with local
Olympics (London 2012), the World Cup in businesses or cultural/artistic
soccer (South Africa 2010), or the World phenomenon that have in some way
Expo (Seville) to kick start global become famous nationally and/or
attention. For many, these events internationally. Peter Jackson, director of
represent an opportunity to make a major The Lord of the Rings trilogy, has done
difference to their cities, as Robin Wales, something unlikely in his home city of
Mayor of the London Borough of Wellington, New Zealand, a city of
Newham, explains: the majority of 26 900,000 inhabitants, but not one
sports competitions in the London 2012 previously considered a world cultural
Olympics will take place in Newham. capital.
Many of the new, state-of-the-art venues
will be retained after the Games for The director has built a permanent facility
community as well as elite sporting uses, there, perhaps the worlds most
and new housing and business parks will sophisticated filmmaking complex. He
abut what will be the largest public park deliberately sited it in New Zealand
to be built in the UK since the 19th because he realised what many American
century. The council is determined to cities discovered during the 90s:
seize the opportunity to build a paradigm-busting creative industries
sustainable, inclusive community with could single-handedly change the ways
wide-ranging social and economic cities flourish and drive dynamic,
benefits for the boroughs residents. widespread economic change. He realised
Larry Campbell, the Mayor of Vancouver, that with the allure of the Rings trilogy, he
adds that winning the 2010 Winter could attract a diversely creative array of
Olympics has placed the city at the centre talent from all over the world to New
of global focus: the 2010 Winter Zealand; the best cinematographers,
Olympics are having a big impact on costume designers, sound technicians,
Vancouver bigger than perhaps many computer graphic artists, model builders,
thought. People all over are talking and editors and animators.
wanting to come here to see what it is all
The strategy of specialisation has been
about. They are having a huge impact in
used to powerful effect in the very north
bringing recognition to Vancouver.
of Finland, in the city of Oulu, just a few
It may be tempting for many cities to miles south of the Arctic Circle. The city
choose the lighthouse strategy as Bilbao has set out a plan to become a city of hi-
did. But before throwing themselves into tech innovation and attract new
this, they ought to pause to study that businesses to base themselves there. The
citys political progress before the project Smart Oulu project has created a range of
was initiated. In Bilbaos case, IT-based initiatives that link houses,
understanding of the past enabled a businesses and public institutions
restatement of the future through dialogue together to foster innovation. The strategy
with the citizens and the city. At the same is paying off and Oulu is attracting a
time, cities should think through the considerable number of hi-tech
consequences an attraction like the businesses to the frozen north.
Guggenheim Museum will have on the
local city culture. The most important
message with regards to cultural planning
is the importance of the city being itself
and not simply trying to copy others. To
see the value in the citys natural
qualities and attributes can often be the
best starting point for any strategy.
City planners need to be careful that they Key questions for cultural
Strategic questions: are clear about the creativity present in
their city and its basis in the real fabric
planning
What kind of people do you want to The emerging trend, for cultural capital
and life of the city itself. They need to
attract to your city? How will you variously described as cultural planning,
make sure that they help to create the
ensure that what you offer corresponds urban planning or cultural regeneration, is
conditions in which their citys real
to their needs and wants? playing an increasingly influential role in
creativity can prosper, and must be wary
of pursuing false visions of their citys true cities plans for the future. Linked to the
creative image. development of cities, districts, industrial
areas and dockland areas, the goal of this
There are many questions to consider development is to create growth and
when thinking about cultural planning. encourage activity in the service and
Who controls the creative economy? knowledge industries, creative activity and
Should the focus be on consumption, to create an environment that will attract
participation or production? How the creative class.
accessible should public projects and
institutions be? Should the focus be on Cities wishing to embark on this journey
the safe side, or should one dare to be need to ask themselves some
innovative? Should the focus be on fundamental questions. They need to
contemporary art or artistic heritage? understand how the cultural and leisure
Which tourists does the city wish to qualities and characteristics that their city
attract to see the art? Should the focus be offers can be developed to create an
on city centres or the remote parts of the offering that is unique and differentiated
city? from other cities. They need to
understand who it is they wish to attract
Cities have to examine their own citys and how they can enthuse and engage
unique virtues and base their strategies different parties in the city to help
on the assets they have in order to implement their plans. With this
develop them further. Creativity is not a understanding they need to secure buy-in
quality that can be manufactured or to their plans and determine the tools and
bought in. But it can, once identified, be methods that they can use to turn their
nurtured and helped to flourish. At its vision into a reality.
best, the cultural institutions can be
places that inspire all people to new and The most important task for city leaders
free thinking, says Landry. is to understand and integrate the internal
and external perspective offered by social
intelligence into their vision for the future,
and to create 'opportunity space' for
citizens and employees to innovate.
Conclusion
There is no single blueprint for success
that cities wishing to become thriving
centres for culture and leisure can pursue.
In this section we examine some of the City goals - clean, safe and
environmental issues and problems faced
attractive
by our major cities. We also examine how
some city governments have developed
environmental policies and initiatives to
tackle these problems and improve the
quality and sustainability of their local
Safe
environments.
Technical
capital
Organisational IT/IS
Infrastructure
capital E-Government
Road Industrial
Culture and
Rail
leisure
Water Services
Air Housing
Government
and employees
InfoComm education
Knowledge management
Government Government
and citizens and business
Every city is different in appearance and The situation for African cities is by far
atmosphere. So, too, is each in its more dramatic. Despite some financial
finances. Differences in the structure of support from national governments or
government, the financial system of each donor agencies usually only for the
country and the revenue streams available initial construction of facilities, not their
to the municipality create broad on-going operations municipal
differences in the financial structure of authorities must rely overwhelmingly on
every city. fees, tariffs and local taxes, mainly
property taxes.
The current situation Through such taxes, the better-off sectors
Despite different financial systems most of society those able to own taxable
cities have one thing in common property help pay for services that
increasing financial pressures and a drive benefit a broader layer of the population,
to deliver value for money in public including some of the poor.
service delivery.
Actually collecting all the taxes that could
Across Europe, and in other parts of the be paid, let alone expanding the tax base,
world, there is a wave of decentralisation as is not easy. Property valuations are often
national governments offload more incomplete and out of date, while it is very
responsibility for public services onto local/ difficult to value property in unplanned
city governments (to name a few: Vienna, residential areas, since legal ownership is
Lige, Belgrade, Yokohama, Perth, City of poorly documented. Many taxpayers are
Moron, Buenos Aires). Meanwhile, rising also reluctant to pay what they owe,
unemployment strains local social services especially if corruption is widespread.
while hurting tax receipts. As a
consequence Milan could face a downgrade In the USA, communities ranging from
of its municipal bonds, while Lille, France's Atlanta and Buffalo to Chicago and San
fourth-largest city, has asked for emergency Diego are also experiencing difficulties, as
aid. Even wealthy Stockholm, Sweden, may illustrated in figure 18. The common trend
have to raise taxes because of runaway for cities since the 1980s has been one of
spending on health care. declining federal support from the
Reagan Administration to the present day.
German cities are most at risk in Europe
because so much of their tax income is
tied to business profits, which can
fluctuate dramatically from year to year.
Berlin, for example, is burdened by
crippling interest payments on past
borrowing. The city is currently seeking
assistance from the federal government in
the form of debt relief. In France and Italy,
by comparison, city budgets depend
primarily on real estate taxes, where
receipts are more stable.
3.0
2.5
2.0
1.5
% 1.0
0.5
-0.5
-1.0
1996 1997 1998 1999 2000 2001 2002 2003 2004*
Figure 18: Declining fortunes: % change in contrast dollar revenue for US cities
How did American cities or all other There are also problems with local taxes.
cities worldwide arrive at this point? Many cities rely too heavily on either a
Most obviously, any sluggishness in the sales or property tax, further exposing
economy hit cities all over the world really them to swings in the economy. These
hard, raising expenses and holding down taxes have not in all cases kept pace with
revenues. For example, city hospitals face demographic and economic changes. For
much higher costs when residents lose example, a growing proportion of those
their jobs and, with them, their health with jobs in the city now live in the
insurance. The same job losses can mean suburbs meaning that, while they spend
unpaid taxes. their days in town, their property taxes go
to another local government. Similarly, the
Soaring compensation for municipal sales-tax base is shrinking. In 1960,
employees has become a nationwide goods (which are taxed) represented
problem as well. Such cities as about 60 percent of all sales in the United
Philadelphia, San Diego and Houston all States versus 40 percent for services
find themselves saddled with high (which usually are not taxed). Today, that
personnel costs and staggering unfunded ratio has flipped. Surging online sales also
pension liabilities. Unlike corporations, cut into city revenues by reducing the
which must put money into their pension demand for retail outlets.
plans when assets fall below a certain
level, city governments are free to
contribute when they want to. The
Short term solutions
resulting temptation is to grant generous The answer to such tax problems seems
benefits today and push the liabilities into straightforward cities need to recalibrate
the future. their revenue sources. This requires
reforms but change can be hard and
These days, cities cannot rely on support longsome. Politics often blocks efforts
from the states or the federal government. and restrictions may result from taxpayer
revolts. Hence, instead of solving the
problem, most cities react in an ad hoc
manner with temporary solutions that only
push the problems into the future.
The three Infracos take control of London Undergrounds assets the trains,
tracks, tunnels, signals and stations which are effectively privatised for the
next 30 years. London Underground will manage the PPP contracts and
provide train operators and station staff.
The delivery dates for, as an example, new trains and refurbished stations have
already been agreed and are written in the PPP contracts.
PPPs are all about negotiating deals that are good for both sides. The private
sector wants to earn a return on its ability to invest and perform. The public
sector wants contracts where incentives exist for the private sector supplier to
deliver services on time and to specified standards year after year. In that, the
public sector shares an absolute identity of interest with private financiers
whose return on investment will depend on these services being delivered to
those standards.
Conclusion
The analysis clearly illustrates that big
Master plan
cities worldwide face a vast range of e.g.
financial challenges, some unique to
Thriving economic climate
certain countries or cities, others common
to many areas. All cities need to address High quality government services
the questions of what services to provide
and how they can finance their provision, Leadership among benchmark cities
while at the same time investing in the
future that they want to offer to their
citizens tomorrow.
PPP
Outsourcing
Financial discipline
Chapter 5
Strategic questions Cities futures must be sustainable. And Perhaps the most important
that means ensuring that the infrastructure recommendation for addressing these
Some pertinent questions to ask about on which a city depends is built with their challenges is to keep asking and
the future include: environmental impact as a primary seeking answers to questions about the
consideration. Public transport, energy future of the city. Advice and insight that
What are we looking for?; supplies, water and waste management may contribute to answering them is
What do we see?; are all essential to the continued worth seeking out, wherever it may come
prosperity of a city, so it is imperative that from.
What does the future mean to us, our city leaders ensure that all their policies
city and our citizens?; reflect environmental criteria and that they As the above summary and the preceding
are implemented through joined-up policy chapters show, cities are hugely complex
What do we want?; and conducted through partnerships. organisations that involve collaboration
between and the interaction of a wide
What do we do?; The city has a role to play in developing variety of organisations and individuals.
technical capital by investigating ways to
Is this a good development?;
deliver the services and content which The next section in this document
Who will do it?; comprise e-government. City contains brief interviews with different city
governments should look at e-government leaders around the world. We asked them
Who can we collaborate with? and communications technology at all about the challenges their cities face
levels: from government to government both external and internal how they are
Who can help us?;
(G2G), government to citizens (G2C) and responding to them and what their plans
Where can we find knowledge and government to business (G2B). are for the future. Their responses provide
best practice that will guide us?; a fascinating and varied account of the
and vast array of challenges and opportunities
that make cities the dynamic
What resources are required? environments they are today.
Part 2
Cities in focus
Cities in focus 83
84 Cities in focus
List of participating cities
Cities in focus 85
Amsterdam
Interview with Mr Job Cohen,
Mayor of the City of Amsterdam
Mr Job Cohen
Mayor of the City
of Amsterdam
From Amsterdams point of view, Global and international trends The cities in the Randstad conurbation
large cities have no choice but to cannot solve the problem of accessibility
Competition between large cities will
on their own; so co-operation is more
compete. In The Netherlands the increase globally. Asia, and China in
appropriate than mutual competition. The
large cities will also have to particular, will become an extremely
cities in question are already consulting
important region. Trading relations with
cooperate to deal with the about the problems that they share, and
Asian countries will therefore become very
international competition, important. International migration will also
will step up their efforts to arrive at a
particularly from Asian cities. By remain an issue. Furthermore, the
common approach. Each city will have to
specialising and focusing on the develop its own profile and specialisation.
European Union will gain more and more
Specialisation already comes naturally to
citys unique qualities prominence as a regulator.
the cities to some extent: Rotterdam
Amsterdam hopes to compete in In our view, large cities have no choice boasts a major port, The Hague has the
areas such as education, but to take part in this competition. In International Court of Justice and
knowledge and tourism. The aim doing so, Amsterdam will focus on its Amsterdam is known for its cultural
is to be a creative centre of unique qualities. assets, its airport, financial centre and
expertise where unique talents high-quality knowledge economy.
can develop their full potential. Internal trends Key themes for Amsterdam are:
What comes into play here is the To deal with the international competition education, knowledge and tourism. The
total range of facilities that the it is important for the Dutch cities to work challenge is to get the population to reach
city has to offer. Job Cohen closely together. The heavily urbanised their full potential where knowledge and
western part of The Netherlands forms a education are concerned; only then will
explains how Amsterdam hopes connection of cities called the Randstad. we be able to put this country on the map
to achieve all this. One of the big problems caused by as a bastion of knowledge and skills and
urbanisation is traffic congestion. compete in an international context. The
I AMsterdam is the motto of the geographical location of The Netherlands
city because the citizens are the in Europe is excellent, although the
city.
86 Cities in focus
Cities of the future - global competition, local leadership
Cities in focus 87
Barcelona
Interview with Strategic Metropolitan Planning Office,
City Council of Barcelona
Joan Clos
Mayor of Barcelona
Barcelona waterfront,
Spain
The information obtained in the Global and international trends The city of Barcelona must be understood
interview refers to the city of within its metropolitan context and,
There are three major issues that will
accordingly, we must create mobility and
Barcelona in its metropolitan affect the city in the next ten years. These
transport networks that can cover the
context. This is because the refer to the position of the Barcelona
entire territory and guarantee the
economy in a globalised scenario,
representatives of the City existence of basic infrastructures for the
physical and virtual connectivity and
Council of Barcelona thought it social cohesion.
flow of goods and people. Likewise, the
more appropriate for its availability of telematic-based connectivity
Strategic Metropolitan Planning The globalisation process is changing the infrastructures constitutes a key element
location of economic activity, affecting in being able to recruit the parts of the
Office to be the source of productive processes that have high
many areas and leading to an economic
information. transition. Some of the key areas are the added value.
steady loss of those parts of the
Thus, we should highlight the Finally, a change is taking place in the
production process lacking added value
social and demographic basis of the city
fact that the activity of the and the adaptation of the human
of Barcelona and the metropolitan area as
Strategic Metropolitan Planning resources base to the requirements of
a whole that is linked to the phenomenon
globalisation.
Office goes beyond the area of of immigration. In this area, the challenges
intervention of the Barcelona Concerning physical and virtual relate to the fight against discrimination
City Council per se, acting connectivity, the growth of the city and and the social exclusion of immigrants.
basically as a frame of the creation of a proper economic
reference for the development transition must assure the existence of the
infrastructures and installations needed to
of municipal policies. meet the basic requirements of mobility,
accessibility and connectivity.
88 Cities in focus
Cities of the future - global competition, local leadership
Internal trends Nevertheless, Barcelona is experiencing a At the political level we will need to
degree of malaise in terms of its develop leadership both at the strategic
At the national level, the issues that will
articulation of an urban development and operational level. For the former, the
affect the city are particularly the transfer
model and model for economic and idea will be to define citizen-based
of financial resources from the Regional
technological growth. Thus, the city has strategies, while the latter will consist of
Government and the National
moved from a centralised perspective putting them into practice.
Administration, as well as taking over and
without strengthening the web of nuclei
exercising the key powers over integration The reputation and prestige of the City
that make up the metropolitan area. On
and the regulation of immigration, safety, Council of Barcelona will probably depend
the other hand, we see a lack of
education and government housing. in the next 10 years on the following
convergence of targets emanating from
issues:
At the local level, the key issues are the the public and private sectors in terms of
governability of the metropolitan area in the citys development model. Accessibility to the administration by
terms of politics, leadership and citizens through a motivated civil
organisation. Of special note are critical Consequences for the city service;
aspects such as education, high numbers
At this time, at the political, business and Quality of the cityscape and
leaving secondary education, and the
civil society levels everyone is aware that maintenance of public spaces;
need to strengthen innovation.
there is a certain crisis in the development
model and that there is a need to link the Clarity and transparency as seen by
In terms of innovation, the challenges are in
new projects to the private sector and the business people in terms of business
having the necessary institutions (science
citizen. opportunities; and
installations, technology transfer) that
require public investment, especially with
In this context, the value of internal Capacity for dialogue, absorbing
the support of public-private ventures. immigration and cosmopolitanism.
initiative, as one of the citys strengths,
constitutes an asset recognised by all the In conclusion, the main challenge for
External and internal challenges agents, particularly at the business and Barcelona is to deal successfully with the
At the external level, competition not only cultural level. To this we can add the transition from an industrial economy to a
flows from a European environment, but is esteem in which the citys inhabitants and new model of urban development, based
now international. This has introduced a institutions hold their city. on the knowledge economy.
series of extremely important challenges
for Barcelona in terms of attracting Priorities for the next decade
investment opportunities and developing
The vision of Barcelona in 2015 is that of
new activities requiring a flexible
a city characterised by the following:
organisation of society in terms of
leadership and the creation of integration An economy based on the development
dynamics in the metropolitan area. of a value added and innovative culture
depending on the growth of new
With regards to business recruitment,
industries: such as audio-visual, design,
Barcelona is well positioned in terms of the
etc;
dynamics of economic growth, which is a
strength for dealing with the challenges in New uses of transport based on the
this area. The social fabric of Barcelona is improvement of mobility; and
highly participatory, and more than willing
to get involved in policies and initiatives An education system that can guarantee
proper training for our human resources,
that are launched by public and private
administrations and bodies. One of the having notably reduced the number of
current challenges is to link the new school leavers.
projects that are being launched by the From the point of view of promoting the
municipal government to the citizenry in city, the strategy must centre on
order to make private and public efforts networking internationally in order to
converge. Thus, of special note is the fact assure the links needed to develop
that Barcelona is to a great extent a self- specific activities, for example, the
made city, having developed its own identification of opportunities in certain
economic fabric rooted in the city. industries such as aerospace and bio-
medicine.
Cities in focus 89
Belgrade
Interview with Mr Bojan Stanojevic,
City Manager, City of Belgrade
Mr Bojan Stanojevic,
City Manager,
City of Belgrade
Belgrade (Beograd) has about Global and international trends In the political sense, it is necessary to
1.6 million inhabitants. It is divide political functions from state
The global or international trends that will
functions, to do this a more professional
located in the south-east of affect the city in the future are: change in
administration is needed. In the
Europe, on the Balkan the GDP structure, development of the
administrative sense, the biggest problem is
service sector, development of housing
Peninsula, at the confluence of the low level of salaries in the
construction, increase in the need to
the Sava and Danube rivers. It communicate and development of the
administration, which acts as a discincentive
is one of the oldest cities in traffic infrastructure.
to existing employees and deters those who
Europe and since ancient times may be seeking employment. The solution
to both problems lies in decentralisation and
has occupied an important Internal trends in setting new criteria for the functioning of
position as an intersection The main local trends in the region are the state administration.
between the roads of Eastern stabilisation of the political situation and
and Western Europe. We privatisation of the public sector. Relevant corporate governance issues are:
the new organisation for the state
interviewed the City Manager The major internal challenges which the administration, restructuring of the public
Mr Bojan Stanojevic and asked city is facing arise from: the reorganisation sector and partnership between the
him about the challenges he of the administration and the introduction private and public sectors.
faces and how Belgrade is of a more qualified structure in the city
administration. Furthermore, there is a The law and the internal regulations define
responding to them.
challenge to reduce the number of recruitment in the city. Reporting is in
employees in the city administration and need of standardisation and further
restructure the public companies. If the development. Performance management
restructuring of the city administration is graded internally and externally (within
does not take place, the development of the administration and by the citizens).
the city will slow down. The city is currently developing the
mechanisms for risk management in
business.
90 Cities in focus
Cities of the future - global competition, local leadership
Cities in focus 91
City of Bergen
Interview with Mrs Monica Mland,
Chief Commisioner of the City of Bergen
City of Bergen is the second We talked to Monica Mland, Global and international trends
largest city in Norway with about the chief Commissioner of the Increasing global mobility of labour and
240,000 citizens. Nearly 25,000 city of City of Bergen, about the capital is one of the most significant
students are enrolled at the challenges for the future and their global and international trends.
Businesses change ownership and so
Universities of City of Bergen. consequences for the city.
management, expertise, production and
The city is the port to the Her aim is to keep City of Bergen workplaces move. This influences the
Norwegian fjords and is an old as an international city able to citys industrial base and, through this, a
Hanseatic city with long meet citizens needs and give central part of its financial base.
international traditions. Today City them security. Development in international agreements
of Bergen is a modern centre such as the EFTA and WTO, will also have
significant consequences for the city in
with great marine, maritime and
general terms.
oil industries. City of Bergen is
one of the few cities in the world Globalisation and increased international
which is governed by a mobility in higher education also create
challenges to the citys ability to attract
parliamentarian model where the
and keep talented and highly qualified
city Council elects a City young people and secure the high levels
Government. of expertise which make the city an
attractive place for commercial
development.
92 Cities in focus
Cities of the future - global competition, local leadership
Global digital development will have a Consequences for the city Citizens engagement will converge with
significant impact on municipal services, their interests as consumers. Their
To meet this situation the city has
and these developments create new confidence in politicians will be related to
changed both its political and
possibilities with regards to: how well they believe their consumer
administrative structure by eliminating the
needs are met. The challenge for
city district organisation. The municipality
Change and improved communication politicians will be to understand and
is now organised into two levels of
with its citizens; and satisfy consumer needs and communicate
government. The city has, to an increased
this to citizens.
Methods to provide services, including extent, become an engager of external
the possibility of producing digital service providers, creating a more
services for other municipalities, or competitive environment for service Priorities for the next decade
outsourcing production of digital provision. In the next ten years the city of City of
services to producers in other parts of Bergen will engage in the following
In the future, the introduction of new
the world. specific tasks and projects:
digital solutions to increase administrative
efficiency, communication with citizens New Public Management;
Internal trends and other aspects of service provision will
The increase in the need for be very important. Services for children, City of Bergen is and shall develop as
regionalisation caused by the the elderly and people in need of medical an international city;
development of common labour and services will be strengthened as primary The development of the cultural sector
housing markets between the big city and tasks. as a central part of the development of
the surrounding municipalities is an
the city; and
important development. The importance Mrs Mland is keen to create active
of municipal borders will decrease and interaction with educational The municipality shall appear as a
great improvements in infrastructure establishments, local and non-local modern service producer which meets
within the transport sector will in the investors surrounding municipalities, citizens needs and provides them with
future strengthen the regional industry and commerce and through this security. It is important that the
perspective. engage them in working on the business municipal is seen as being among the
plan to strengthen the ability of the city
New ways of organising and operating best-governed cities.
and its surroundings to meet the external
service production increased and internal challenges.
outsourcing of service production and the
progress of the municipal as the engager, The scenario for City of Bergen scenarier
as opposed to producer of services is 2020 constitutes an important part of this
an important trend for the future. process. The city government will have an
important role as an advisor or
External and internal challenges coordinator for business development. It
will lay out the grounds and conditions for
Local investors are conservative with
network cooperation, and actively
regards to their participation in local
participate in such networks. An example
commercial development through, for
of this network cooperation is Education
example, an investment fund. This
City of Bergen where the municipality
situation weakens the foundation of
and higher education establishments are
commercial development and can also
co-operating to meet targets for increased
restrict contributions from investors
national, international and global mobility
beyond the region.
and competition within higher education.
Demographic developments mean that
The citys corporate sector has a strong
the city faces significant challenges to
tradition of CSR. Mrs Mland believes
finance services to meet the needs of its
that this influences citizens attitudes to
changing population. At the same time the
politicians. Increasingly, citizens see
city has a large accumulated economic
themselves as consumers of municipal
deficit, which in itself provides the city
services.
with a significant challenge.
Cities in focus 93
Berlin
Interview with Harald Wolf,
Mayor and Senator for Economics, Employment and Womens Issues in Berlin
Mr Harald Wolf,
Mayor and Senator
for Economics,
Employment and
Womens Issues in
Berlin
Berlin is a city of many faces. Global and international trends The expansion of the European Union
It is the largest city in Germany After forty years of division, the reunified means a chance and a challenge at the
and is aiming to use its high city of Berlin is on its way to retaining its same time. Berlin is moving into the
degree of creative potential in position among the leading capitals of the geographical center of the EU; at the
same time, the acceding countries
coming years to make a mark world. Main factors influencing political
and entrepreneurial activities will be represent new competitors on existing
for itself as a city of knowledge
ongoing globalisation with increasing markets. Berlin has the chance to
and as a centre of excellence
competitive pressures, the expansion of redevelop regional economic
for the health industry. Berlin interdependencies that were destroyed
the European Union, the trend to an
is also seeking to re-establish by the German and European division
information society and the demographic
itself once again as a major and the consequences of the Second
development.
world city after forty years World War; and
of German division. Berlin In this way, globalisation as well as the
growing significance of knowledge as As in the rest of Europe, demographic
recognises that its most developments in Germany are
an economic factor will benefit
important assets are its people characterised by a shift in the age
locations with a highly qualified
and its extraordinary attraction structure of society whereby Berlin,
workforce potential. As growing
to young people from all over competitive pressure endangers however, is only affected to a lesser
the world. Together Berlin and employment in traditional sectors, extent because of its high level of
its people will be able to meet action has to be taken against a attractiveness for young people and it
the challenges of the 21st polarisation of the employment system; can expect a stable development in
century. population for the foreseeable future.
94 Cities in focus
Cities of the future - global competition, local leadership
Internal trends In the field of traffic and mobility, Berlin city for some years, relies on
also combines extraordinary research and empowerment and activation of people
In view of the federal structure of
development competence with a strong and protagonists within an area. The new
Germany and, in particular, due to its own
business potential in the sectors of education act delegates more
historical development, Berlin can not
automotive engineering, railway traffic, responsibility to the schools enabling
claim a position that is comparable with
aviation and space flight as well as in the them to develop a profile as a center of
that of other European capital cities. For
interface to information technology in social life and mutual encounter within the
this reason, the city is resolutely relying on
telematics. city quarter, whereby companies and firms
its own strengths that above all lie in the
are also integrated.
immense potential of science and
research, culture and creativity. The focus External and internal challenges A fundamental requirement for a
here will be on markets where growth can Berlin is faced with the challenge of successful city development, however, is
be generated through innovation. mastering economic structural change to overcome unemployment. The creation
under the increasingly difficult conditions of sufficient jobs through increasing the
In order to be able to bundle these
of the globalised markets while at the competitiveness of the city, therefore, has
strengths, Berlin is focussing on areas
same time securing social cohesion within absolute priority.
where a market potential fits with the
the city under conditions of an extremely
citys technological competence. These Shoulder to shoulder with the citizens,
restrictive budget situation. Despite a high
fields were identified in a widespread trade and industry, science and politics,
level of unemployment and increasingly
discussion process between politics, Berlin will be able to position the city as a
apparent poverty, Berlin is nevertheless a
trade and industry, science and the desirable place to live and a future-
city that offers its citizens an
citizens of Berlin and they enjoy a high oriented metropolis in Europe.
extraordinarily high degree of security and
degree of acceptance. The areas of
attractive living conditions.
competence are:
The high level of indebtedness of the city,
biological and medical engineering;
however, represents a particular risk that
information technology, communication will have to be reduced to an acceptable
technology and media;
amount through consistent budgetary
traffic engineering; and restraint and with the help of the federal
as well as the optical technologies, government and the solidarity of the
micro and nanotechnology. German federal states.
Cities in focus 95
Birmingham
Interview with Cllr. Mike Whitby,
Leader Birmingham City Council, UK
Selfridges alongside
St Martins Church,
Birmingham Bullring
Birmingham is a thriving, multi- In the last decade Birmingham Global and international trends
racial city at the economic has adapted and witnessed an A key challenge for Birmingham is how to
heart of the West Midlands, amazing transformation, with define itself as a major centre of
with a population close to a the renaissance of the city commerce and culture and to become a
catalyst and engine for both city and
million people. Its economic centre, considerable growth
regional prosperity.
role and prosperity were and improvements in the citys
originally based upon the competitiveness. However, not Leaders acknowledge that Birmingham
manufacturing industry, all communities or areas have needs to develop a powerful and
internationally renowned brand and are
however rapid worldwide benefited from this economic
looking to other similar cities such as
economic change in the 1970s prosperity, and the focus of Barcelona and Lyon to learn from their
and 1980s caused massive recent years has been to experiences of building distinct
decline in manufacturing spread this prosperity, through international identities.
employment, with serious creating flourishing
For the city and region to prosper
impact on the economic life of neighbourhoods across the internationally, Birmingham must become
the city, and a disproportionate city, where people want to live, the natural hub of the region, bringing
impact in inner city areas. work and invest. together the strengths and assets of the
West Midlands region into a unique and
more powerful offering.
96 Cities in focus
Cities of the future - global competition, local leadership
these positive trends, it will be essential to retail, entertainment and cultural facilities, Priorities for the next decade
ensure that the pipeline of regeneration which have all helped to retain top talent.
Birminghams Local Strategic Partnership
projects continues to produce major For example, the Birmingham Bull Ring
has set out a vision for the city:
investment. retail development has received 52
international accolades within 12 month of Birmingham as a city of national and
Success will also depend on capitalising opening and attracted 37M visitors. international significance, at the heart of
on global relationships and links that are
the West Midlands a city that attracts
unique to Birmingham. City leaders have Patterns of employment will continue to
investment and jobs;
identified three strategic relationships change. There will be fewer jobs in
which could lead to bilateral benefits and manufacturing and more in services. More Birmingham as a city made up of many
increased prosperity, including: jobs will require high levels of knowledge flourishing neighbourhoods, whose
and skills, and Birmingham's prosperity residents benefit from the city's economic
Chicago learning from Chicagos will depend on attracting and keeping importance a city where the differences
experience of successfully celebrating and such jobs and the people who can do between the most and least deprived are
harnessing cultural diversity and, learning them. The city will need to act to prevent being reduced.
lessons from its recent economic shortages in key public sector services
renaissance; teachers, doctors, nurses and carers.
Northern India building on the strong Decent homes and quality of life is also a
cultural, financial and trade links between key issue. The Council manages 70,000
the citys large Indian population and the homes in the city. It is vital that these
emerging economic powerhouse; provide quality living to support social
cohesion and harmony and for individual
China (particularly Guangzhou in Southern
citizens to feel a part of the city agenda.
China) building on links with Chinese
students, residents and the large investors Maintaining and building positive
who are key stakeholders in many city relationships between city government and
developments. local citizens is also a key priority.
Birmingham is the largest local authority in
External and internal challenges the UK, serving a diverse population
There is a need to improve transport some with great wealth and others in
systems to prevent congestion blocking absolute poverty with a diverse ethnic
economic growth. Improving transport mix. As such, it is vital that citizens feel that
links within the city and expanding the the delivery of local services and the
International Airport is important to supporting governance arrangements is
ensure that Birmingham is not only responsive to their needs.
accessible as a city and city region, but
To address this Birmingham is developing
also as a gateway/hub to other parts of
a model of governance based on 11
the UK and the world.
districts or (vibrant villages) to ensure it
The challenge of ensuring equality at the connects and listens to its communities.
same time as respect for diversity must
In terms of internal challenges, leaders
continue to be a high priority. Social
recognise that there is a need to define
inclusion, social cohesion and
and develop team Birmingham.
opportunities that are available to all
Essentially this should include all the
continue to be major tests of success.
agencies associated with the city (both
One of Birminghams greatest assets is public and private sector) in addition to
high quality education. Joined up thinking the voluntary sector which should work
and action have meant the city has been together (in partnership arrangements) to
able to retain many of its high quality deliver quality services.
graduates. For example, previously derelict
National fiscal pressure also means that
parts of the city have been regenerated and
the authority must continue to manage its
now provide modern and desirable living
finances prudently and ensure value for
space for young professionals. Coupled
money in the delivery of high quality
with this is the development of world class
public services.
Cities in focus 97
Brisbane
Interview with Jude Munro,
Chief Executive Officer, Brisbane City Council
Jude Munro,
Cheif Eperating Officer of
the City of Brisbane
Brisbane, the capital of Global and international trends The global threat of terrorism is felt in
Queensland, is a city of 1.6 Brisbane, specifically in the reallocation of
Changing global demographics, including
major national funds to mitigate risk and the
million people and Australias the potential of worldwide skill shortages
citys economy, like many others, is also
third largest city. It is a young and the international issue of the ageing
affected by the global rise in oil prices.
population are key trends impacting the
and culturally diverse
population of Brisbane and influencing the
population on Australias East strategic direction of the business Internal trends
Coast. community. An ageing population may Environmental issues such as climate
result in escalating health costs and an change impact productivity in Brisbane.
This article is based on a increased need for age-specific housing Both the financial and ecological value of
conversation with Jude Munro, as well as labour and skills shortages. land and water assets is diminishing as
Chief Executive Officer (CEO) of the resources are run down.
The emergence of China and India as
the City of Brisbane. economic superpowers is a growing Human and development capital is
influence and CEO Jude Munro notes the draining from long established, non-
reliance of Australias national economy metropolitan regions and Ms Munro notes
on developing world commodities to the inefficiencies of cities driven by sprawl
support developed world lifestyles. and a lack of national policy or direction
on the issue. Post war land use and urban
The new international economic driver of
planning left the city with low population
quality of life is informing the development
density, but high road provision, which
of housing and residential development in
has resulted in both urban sprawl and the
Brisbane and is providing a new focus for
culture of the car.
business.
98 Cities in focus
Cities of the future - global competition, local leadership
Cities in focus 99
City of Morn, Buenos Aires
Interview with Dr Martin Sabbatella,
Mayor of Morn, Buenos Aires
Dr Martin Sabbatella,
Mayor of Morn,
Buenos Aires
The City of Morn is part of the Global and international trends Internal trends
Metropolitan Area of Buenos The principal external factors that have From a social point of view, the situation
Aires an urban spread of 24 influenced the development of Morn in is worrying. A large part of Morns
communes plus the Federal the past decade can be summarised as: population live in poverty and a fifth of the
workers are unemployed.
Capital of the Argentine The international insertion of the Federal
Republic, inhabited by Government with other countries in the From an economic point of view, the
approximately 13 million region, especially the MERCOSUR; impact on the industrial base of the City
people. of Morn during the 1990s generated by
The renegotiation of external debt with foreign competition caused the city to
private creditors, as a result of default, transform from an industrial base to the
and the refinancing of debt payments most important commercial center of the
with multilateral credit organisations Western region of the metropolitan area of
which delayed the disbursement of new Buenos Aires.
funds;
From an organisational point of view, the
The impact of the Argentine economic administration faces an important
crisis on the levels of poverty and challenge to achieve a labour identity and
unemployment which are at the same to improve communications among all the
levels as the country average, even levels of the communes administration.
though the population of the city has a
higher social and economic level than The inadequacy of the drainage (58% of
the country average; and the territory lacks drains and 28% lacks
drinking water) and street and road
The upturn of the economy that infrastructure (10% of the territory lacks
occurred in recent years after departing paved streets) is a matter of permanent
from the monetary convertibility with the concern, but we are on the road to an
corresponding devaluation of the peso imminent solution.
with respect to the US dollar.
To overcome these needs, the residents of From a regional point of view it will be Priorities for the next decade
Morn have supported a process of important that the changes generated in
The city has developed an action plan for
transformation that grants them greater Morn are supplemented by urban and
the next decade, concentrating its efforts
participation in public matters and have social changes in the environment so that
on:
been and are amenable to the idea of they do not constitute barriers that smother
building a city of the future as an urgent, our possibilities of economic, social and Widening the coverage of the networks
comprehensive task that depends on all. cultural growth. Today these issues do not of basic infrastructure of drinking water,
appear problematic, but are approached sewers and paving;
All these factors converge on the need for with much interest and responsibility by the
an extensive political and institutional city through permanent exchange with
Doubling the number of public green
reform that guarantees total transparency, spaces currently existing;
other municipalities as well as the
both for the residents of Morn and for Provincial and Federal Governments. Increasing home ownership by
those that do business in the city. They developing mechanisms for financing
need clear and honest rules of the game The administration has been modifying the
home ownership and eliminating shanty
to carry out their projects. commitment of public employees to their
towns or emergency neighbourhoods;
work through a better system of salaries,
External and internal challenges improvements in labour conditions and the Generating urban developments
example of the community leaders. (shopping complexes and housing) for
In the coming ten years the most delicate
sectors with higher purchasing power in
issues will mainly involve security, quality The Mayor has dedicated the first stages
education, work, the environment, the role the central area of Morn, extending
of his administration to work intensely in
of women, opportunities for the young urbanisation of the central area east and
the fight against corruption embedded in
and care for the elderly. the local government and with the west of downtown;
generation of mechanisms to promote the Improving Healthcare by widening the
To face these challenges, the City of
participation of the civil community in the Single Municipal Health System that
Morn places great emphasis on values
design and implementation of government encompasses the services of the
such as social integration, transparency in
action. Central Hospital of the City (Hospital
the handling of public resources,
promotion of citizen participation, the This has allowed Morn to be identified by Ostaciana B. De Lavignolle) and of 15
search for institutional quality, efficiency in its neighbours as well as by the press and health centers in the neighborhoods and
performance and equitable advancement. by local, national and international leaders increase the coverage of the health
as a place where transparency and civil centers, increasing them to 25 centers;
The administration of the commune
participation are effective and efficient for
interprets the expression development Applying policies to improve the
the resolution of problems of the
in a wide sense, encompassing the environment;
commune. This issue constitutes an
economic aspect as well as health,
integration of women and young people
important starting point for the city that Working with national railway
they want to create. companies to improve their installations
and the integration of all social levels in
in the commune, especially the railway
the activities of the municipality. In recent years the local government has
stations;
been firmly involved in economic
In line with this conceptual foundation, the
development; and interchange with the Starting up new branches within the
city defines its development depending on
economic and social players is intense and commune to enhance internal
joint actions between the public and private
productive. The latter have warmly communications and with other
sectors, between the state and the economic
received the proposals of the Strategic communes; and
players that can and wish to invest.
Development Plan submitted in mid-May
2005 by the community government and in Strengthening and deepening the
Consequences for the city general, nearly all sectors of Morn are process of municipal decentralisation
Morn is defining its identity as a city for promoting participation in social and urban that began in 2003 in search of
the coming decades, and in doing so, is projects. improving the democratic participation
carrying out activities to define the of the citizens of Morn through the
attributes of its civil society, the design of Additionally, to attract investments, the implementation during 2006 and 2007
its government and the mechanisms of community government is using
of units of community management,
participation/ communication between the management tools to support
where citizens can exercise their
commune and the citizens that inhabit it; development, such as the allocation of
political rights in a more direct manner.
paying attention to their needs, their land uses or tax incentives, which promote
rights, their interests and their integration. investment and generate employment.
From a small town of 3000 We talked to Kleist Sykes, Dar- Global and international trends
inhabitants in the 1860s, Dar- es-Salaams energetic mayor The progressive globalisation of world
es-Salaam has grown to be the and his City Planner Raphael trade should work in Dar-es-Salaams
largest city in Tanzania and the Ndunguru, to ask them how favour over the next 10 years. Dar has the
biggest port in East Africa handling transit
countrys industrial and they planned to address this
goods bound for its landlocked
commercial heart with an challenge and realise their neighbours in Central Africa, as well as its
estimated population of 3.2 vision for the city in 2015. own agricultural and mineral exports. The
million, growing at the rate of port serves the Middle East and faces
4.2% per year. Struggling with South and South East Asia across the
diminishing contributions from Indian Ocean, which makes it a natural
entry point to Africa for these potential
central government revenues,
powerhouses of manufacturing. Roads
the city nonetheless manages within Tanzania are generally good and
to provide basic services for innovative financing is revitalising the
most of its citizens. The railway system.
accelerating rate of migration
In the run-up to 2015, Dar-es-Salaam
into the city from rural areas should benefit from the new scaling up of
will however, put severe strains international donor funding to the African
on the infrastructure and the continent, as advocated by the UN-
social fabric of the city over the sponsored Millennium project and the
next 10 years. Commission for Africa and agreed by the
G8 Summit in July 2005.
New paradigms in global tourism are Three of the paramount challenges for Dar- The City Council is taking a consultative
making East Africa a magnet for tourists es-Salaam over the next ten years all derive approach to the problems of unplanned
from all over the world, including from the projected expansion of the city: housing and slum clearance. While some
countries such as China and India. Dar- public transport, non-planned housing and of the international donors prefer the
es-Salaam must meet the challenge of solid waste management. The 100,000 cars option of upgrading slum dwellings, the
transforming itself from a staging post for in the city today, which already cause Mayor and Council believe that the
the fabulous game parks and Zanzibar, to significant traffic jams, could rise to 500,000 construction of low-cost housing using
a tourist destination in its own right. in ten years. Unless properly managed, this private sector funds, offers a more
volume of private cars will seriously impede sustainable solution and allows for the
Internal trends the ability of the taxi-vans (daladalas) and installation and monitoring of the
buses to ferry people to and from work. infrastructure that will reduce
The 150,000 people swelling Dar-es-
Today around 70% of Dars inhabitants live environmental and health hazards in the
Salaams population every year is the one
in unplanned housing, much of it in poor future. In the quest for appropriate
pervasive internal trend that conditions all
condition and nearly all of it, unplumbed for environmental management systems, the
the others. Most of the new urban
solid waste, which creates serious health Council is working closely with UN Habitat
migrants come from the rural areas of the
and environmental problems. and the Safer Cities Programme, the
country and are often ill equipped to deal
Canadian-led, global network of city
with the new rhythms of urban life. As
Meeting the challenges managers. Brokering public-private
they also lack the skills to join the formal
partnerships around solid and liquid waste
economy, the informal sector is Mayor Sykes and Raphael Ndunguru
disposal will remain a priority for the
ballooning, which deprives the City share a strong vision for their city which
Council in the medium term.
Council of financial resources to provide includes promoting transparency, integrity
basic education and healthcare services. and inclusiveness in city governance,
raising the physical standard of living for Priorities for the next decade
The recent spate of privatisations of citizens and making Dar-es-Salaam an
public utilities, notably electric power and Aggregate the powers of the three
attractive and pleasant place in which to
water, are too recent to be rated municipal councils and the City Council
live and spend leisure time.
unqualified successes, but all the signs for more coherent, transparent and
are that they will eventually benefit the To try and lessen its dependence on decisive governance;
less privileged inhabitants of Dar and diminishing central government resources,
Manage rural-urban migration through
allow the City Council to focus on other the government, along with a pool of
an inclusive system of governance and
pressing issues. development partners, has set up the Local
partnerships with NGOs, community-
Government Reform Project (LGRP). The
based organisations and the private
External and internal challenges project is searching for innovative ways of
financing essential social services. To sector;
Central Government and Local Authorities
address the issue of the diffusion of Mobilise the private sector to remove
will need to recognise that rural-urban
management and decision making across and reconstruct slums and install waste
migration is a national issue and work
the three municipalities, the LGRP is disposal systems; and
closely together to address the problems
looking into ways of integrating some of
in a holistic manner. Recent belt- Bring the Dar-es-Salaam Rapid
their functions and making local
tightening by the central government has Transport System (DART) to a
government more inclusive by actively
contributed to the shrinking of the City successful conclusion and undertake
involving womens organisations, youth and
Councils resources.
other civil society organisations. related work to make life better for both
Administratively, Dar-es-Salaam was quite inhabitants and tourists in the city
For public transport, Mayor Sykes has
recently split into three municipalities, centre.
come up with a masterful scheme.
each with its own municipal council, and
Borrowing from the experience of his friend Mayor Sykes and the City Council will
coordinated by the City Council led by the
Enrique Penalosa, ex-Mayor of Bogota in continue to consult with their peers in
Mayor. This arrangement may not reflect
Colombia, and working with minimal funds other cities around the world to find the
the current needs of the city as a whole
from the World Bank, Mayor Sykes plans to smartest and most appropriate solutions
and certainly slows down the decision-
install bus trains in the city. These will be to assure Dars quality of life for the next
making process in the areas of resource
cheap enough to discourage cars from the 10 years.
allocation.
centre of town. The resulting decongestion
of the city centre will allow other plans for
the enhancement of city life, to go forward.
The latest city population figure Global and international trends Internal trends
stands at 2.5 million people The issue of well-being linked to poverty Urban renewal is a key internal trend that
inhabiting an area of 1889 square is one we share with our neighbouring has to ensure that a world-class
kilometres, 23% of the province of countries. An integrated response to metropolitan municipality within the
Gautengs gross geographic HIV/AIDS and the successful control of African context is built. This city will have
the pandemic in other African countries to integrate communities and break racial
product is generated in Ekurhuleni.
will impact on the city in the future. The and ethnic barriers. Tackling poverty head
successful implementation of an on through development in line with the
The Executive Mayor recently
immunisation programme for children targets and programmes emanating from
ushered in what he termed the year against diseases such as malaria and the World Summit on Sustainable
of popular mobilisation to advance polio is critical to the wellbeing of the Development is also a major trend.
the vision of the Freedom Charter. continent. In addition, the manner in
He stated; It was 50 years ago that which opportunistic infections from
External challenges
South Africans with passion to build HIV/AIDS are treated will also pose major
challenges to the city over the next Ekurhuleni has a number of key strengths.
and develop our country come
decade. It has well-established transport and other
together to adopt the Freedom infrastructure, a strong manufacturing
Charter when they met in Kliptown Socio-economic issues relate to crime base in a period when this sector is
in 1955. and violence. Drug trafficking is a major expanding reasonably vigorously in South
crime issue. Africa (despite current declines associated
The mayor said the task now was with the strong rand), and an outstanding
South Africa is no longer isolated, but is a
to lead the people to achieve the location in the countrys economic
major player in the global economy.
goals of the Charter in the interests heartland with a key airport linking
Ekurhuleni needs to understand the
of people of all races, colours, Southern Africa to the rest of the world.
environment and respond accordingly.
genders, ages and places.
Ekurhuleni means place of peace.
But there are drawbacks. Its location near Consequences for the city Priorities for the next decade
Johannesburg results in many activities
that would normally take root in a Urban decay and degeneration of the city is Greater co-operation between Tshwane,
metropolitan area the size of Ekurhuleni a major challenge. Intensive research has Johannesburg and Ekurhuleni Metros is
being drawn across the boundary into been completed in the Ekurhuleni region to needed. Similar challenges are experienced
Johannesburg or Tshwane. A number of identify areas requiring particular attention. and lessons may be learnt from these
the industrial areas, such as the Alrode- This has resulted in a deliberate effort to metros in terms of tried and tested systems,
Wadeville corridor, contain a relatively uplift and upgrade those needy areas programmes and procedures. Ring-fencing
high proportion of older and declining through projects such as, inter alia, the electricity and the establishment of the
industries. Much of the infrastructure is Inner City Housing Project in Germiston and Regional Electricity Distributor will impact on
old and decaying. The disparate planning other similar initiatives in the hubs of municipalities significantly. Effort must be
of the past has not supported the Ekurhulenis various urban areas. made to ensure that this initiative works.
emergence of agglomeration economies, Increased poverty and underdevelopment The responsibility of Ekurhuleni Metro is to
with highways serving to move traffic pose further challenges. Various projects create the space for innovation and co-
across the area rather than within it. There have been initiated to address poverty and ordinate initiatives relating to economic
is an extensive rail network, yet it is access for all to basic services in the region.
relatively under utilised. growth and development of the city.
Initiatives such as agri-farms and urban
Ekurhuleni Metro needs to look at innovative
There are three key economic challenges: agriculture are spearheading efforts to put
and creative ways of promoting job creation.
an end to poverty, unemployment and
Ensure that the competitiveness of the malnutrition in all areas within Ekurhuleni.
Trade-offs with business needs to be looked
lead sectors in the economy is at.
protected and promoted, and new An increase in the mortality rate due to
businesses are attracted HIV/AIDS and its consequences is Implementation of service delivery in
probably one of the most severe accordance with the principles of Batho
Seek new foci for economic growth, Pele (consultation, service standards,
challenges facing the city. The
particularly for SMEs, which are
Municipality has identified the scourge of access, redress, value for money, etc) to be
employment generating while expanding
HIV/AIDS as a primary business institutionalised. A call centre for Ekurhuleni
opportunities and overall availability of
imperative and has created an HIV/AIDS is to be set up and the creation of customer
resources Council as a means to manage the fight care centres are all initiatives to ensure the
Enhance the livelihoods and facilitate against this disease. The HIV/AIDS Council enhancement of quality of service delivery.
the subsistence economy of the large is tasked with devising strategies and
proportion of the population who are programmes to fight the disease at the One of the major institutional challenges
unlikely to be drawn into the more workplace and within the community. faced by Ekurhuleni Metro is the
formal economy, or the SMEs. implementation of the Municipal Finance
The Financial sustainability of the Metro
Management Act. This Act places
From a social perspective, the most has weakened and as result innovative
financial management responsibilities on
significant challenges are the high HIV/AIDS means to deal with this have been
each and every senior manager within the
infection rates in the area, the high crime developed. Initiatives include the
levels, the high levels of racially aligned implementation of a Revenue organisation. Heads of Department must
inequality, and the social instability Enhancement and Cost Reduction ensure that they manage their financial
associated with the rapid urbanisation and Project, Restructuring of Municipal Bus resources in terms of the Act.
poverty talking place in the area. Operations, Programme to address
unaccounted for water, compilation of
Internal challenges income differential plan, customer audit
for water and electricity services.
The major challenge is to create a single
identity in the context of the collection of
a number of different towns. Diversity
management, changing service needs,
system compatibility, culture and scale of
services pose institutional challenges to
the municipality.
At the same time, there are severe
financial constraints.
Dr Michael Sutcliffe,
City Manager,
eThekwini Municipality
eThekwini Municipality,
South Africa
The city of Durban, situated The municipal government handles Global and international trends
alongside the Indian Ocean Rim on a budget of R12 billion annually, In the past decade, Durban has emerged as
east coast of South Africa is the and delivers service to diverse one of the fastest growing cities within the
gateway to Africa. It is an communities and businesses. Like Southern African Development Community
economically vibrant, politically its domestic sister cities, eThekwini (SADC) region and currently enjoys sister-
stable and culturally diverse African set out on a challenging new city status with several big cities around the
city with a population of more than journey after the political and world.
3M people. In 1996, the new constitutional changes in the 1990s. Competition between international cities is
democratically elected political The city manager, Michael Sutcliffe, increasing globally and Durban is gearing
leadership, reinstated the citys explains how Durban hopes to up to meet the challenges of operating as a
historical name, eThekwini, an achieve its post-apartheid global city through its various agencies, and
isiZulu meaning for city by the challenges, targets and socio- in particular its international affairs office
water. economic benchmark. based at the city hall.
Internationally, the buzzword is to create The exotic, countryside location of the new Priorities for the city in the next
smart cities with global linkages and sound Sibaya Casino and Resort, the Suncoast
decade
sister-city exchanges and goodwill. In South Casino, a redeveloped Point Waterfront,
Durbans socio-economic thrust and energy
Africa, this means that we must clearly uShaka Marine World and large shopping
as a forward-looking and progressive city
define the priorities for growth and develop- malls, and many other places of interests,
revolves around its 2020 Vision,
ment while ensuring that we address poverty certainly makes Durban an attractive
conceptualised under the political
and the provision of basic services that were stopover for business and pleasure.
leadership of the executive mayor, Mr
largely denied to previously disadvantaged
Thembinkosi Obed Mlaba and a 200-
African people in the apartheid era. Internal Trends
member council.
These twinned objectives are not mutually In a transformational and developmental
mode, the new role of municipalities must The visioning statement, adopted within the
exclusive: instead of seeing poverty as a
ensure that we structure the growth path for developmental context, and against the
problem, we should approach it as a
the future. What we do today, will define backdrop of the historical backlogs created
challenge to bring those previously
whether or not our children will realise their by the apartheid legacy, is aimed at fast-
excluded from the mainstream of our
dreams, aspirations and hopes in a non- tracking Durban into a truly African city that
society, more directly into the growth and
racial, non-sexist democracy. will provide:
development path.
Like other sister cities in South Africa, we Municipal governments are but a part of the adequate safety and security for its
broader picture of local governance. Our citizens and local and international
are faced with huge developmental issues,
success will depend on the degree to which tourists and visitors;
often referred to as "pockets of wealth in a
sea of poverty" and we are committed to we can build public-private sector create employment for majority of the
making our cities better places for all who partnerships between business, labour and economically marginalized black people
live in them. civil society.
alleviate rampant poverty;
Within our spirit and social slogan of Batho Since our dramatic gallop from an apartheid- provide housing solutions; and
based society to democracy, the most
Pele (Putting People First), our main Promote an integrated approach to the
challenge is to define a specific important and wonderfully exciting change is scourge of the HIV-AIDS pandemic, and
developmental path and then stick to it. that the city now belongs to all its residents other diseases such as tuberculosis and
The biggest problem we face today is that and the people of South Africa as a whole. malaria.
we react to any and every 'problem' that As a municipal entity, we encourage our The key priorities for Durban is to realise its
confronts us. employees to pledge themselves to: 2020 vision, prepare for the 2010 FIFA
believing in the organisational culture and Soccer World Cup and tackle crime and the
Against this landscape, we are
ethos of eThekwini, while remaining rampant spread of HIV-Aids, while dealing
implementng a broad-brush approach to
committed to serving the people of the with domestic backlogs such as housing,
attract more and more tourists and boost
municipality and ensuring they work to water and sanitation, poverty and diseases
investor confidence in conjunction with our
build a better life for all on the principles of among the poorest of the poor in the black
dynamic, internationally linked agencies,
good governance and service excellence. population.
Durban Africa and the Durban Investment
Promotional Agency. The challenge is to Urban renewal and the retention of the
build on the well established popularity of External challenges
established and formal business sector,
the City with domestic tourists and attract Durban faces the challenge of combating operating alongside the burgeoning
greater numbers of international travellers crime and international and continental informal sector or second economy in
and businesses. drug rings operating the city, while adopting harmony within the city precincts, are some
a more humane approach to the flood of of our key challenges in the overall thrust of
A big plus to our international portfolio is illegal immigrants and informal settlements making Durban a safer city while providing
our world-class conferencing facility, the within the CBD. the best economic, social and employment
International Convention Centre, inspired by
Climate changes is a priority on the agenda opportunities for all our stakeholders.
South Africas readmission to the world and
supported by the eThekwini Municipality, and the city is collaborating with Other social challenges include integrating
and the venue for the Commonwealth international agencies in terms of this and communities, breaking down racial and
Heads of Government, World Racism the effects of greenhouse gas emissions ethnic barriers and promoting a rainbowism
Conference and several other high-profile while looking at strategies to reduce the One City, Many Cultures policy.
international conferences and banqueting number of private vehicles heading for the
highlights. city daily.
Petra Roth,
Mayor of Frankfurt
Frankfurt is the most Global and international trends National and local trends
international city in Germany Globalisation progresses and increases Based on its natural location advantages,
standing out in terms of its the pressure on modernisation. Change Frankfurt expects to be able to derive
cosmopolitan nature, tolerance and adjustment have become normality. above-average benefits from the growing
The importance of knowledge as a attractiveness of Germany for foreign
and high quality of life. Its
production factor is growing further. direct investment. As an important
specific location advantages Converting technical progress and know- exhibition centre Frankfurt has
make it very attractive to how into marketable products and traditionally participated intensely in
foreign investors. The current services and into cost-saving procedures international trade. Through the
expansion of the airport will will become the crucial factors in the expansion of the airport, the gateway
secure its position as the value added process. function of the Frankfurt Rhein-Main area
is gaining in importance Europe-wide in
gateway to the Rhein-Main Big cities are facing growing respect of growth, jobs and the
area and its importance for the requirements in order to stay attractive as strengthening of the diverse economic
European market. Frankfurt a place to live and work while securing structure. The presence of the Stock
offers a combination of social cohesion. Making available Exchange and the European Central
adequate budgets for economic and
attractive economic location, Bank additionally enhance Frankfurt's
social infrastructure as well as for reputation as an international financial
cultural variety and well- measures to promote quality of life puts centre.
developed social cohesion. great strain on the financial power of
cities as revenues often stagnate or even In addition to this, Frankfurt has
decline. increasingly distinguished itself as a
scientific centre. Enormous investments
into the development of the university
and technical colleges made by the
government of Hesse have enabled a
Catarina Dahlf,
Acting Chief
Executive Officer
When it comes to leadership, it is We will concentrate on alternative Priorities in the next decade
fundamentally important to establish a investments in increased collaboration
People in Gothenburg have the right mix
common picture and develop an between different levels of society trade
of conditions to live a good life. Our vision
understanding of the system where the and industry and non-profit organisations.
is a city of solidarity and sustainability
vision the thought model structure We need to examine rules and regulations
where everybody is needed and has
and the behaviour of the organisation that prevent flexibility and look for
opportunities to develop their lives. In our
communicate. We have to create alternative sources of finance. We need to
city of the future we will turn segregation
leadership that can translate pictures in move people from dependence on social
into integration.
the organisation into practical intelligence. welfare to employment.
We must develop dialogue in all segments City of solidarity a city where all
and develop new meeting places and Municipalities will merge for increased
citizens feel that they have an important
arenas with different people from different support capacity. This raises the question
about the most effective unit for role and that they are needed. A city
backgrounds. Common values provide an
administration and how to develop the with a common sense of responsibility,
important platform for creating this
governments role for maximum engagement and belief in the future;
leadership.
democratic impact.
Sustainable city a city that bases its
External challenges development on maintaining and
Consequences for the city
An external challenge from a growth developing the good city, its character
perspective is to achieve a long-term New channels for communication and and identity without impeding
sustainable balance in all parts of society. dialogue are needed in order to engage
development for future generations; and
The city has to manage the demographic with all our stakeholders.
shift that will influence all social sectors
Transparency is essential for the Integration all citizens of the city of
and the life phases of all citizens. The city Gothenburg are participating in building
development of the democratic process.
needs to retain and develop its our society. Everyone in our city has a
In order to share a common culture the
attractiveness as a labour market and a responsibility for democracy and to
vision must be more global and
city for events and commerce. The brand respect human rights. Through
multidimensional to reflect current
of Gothenburg is the city of events. narrowing the chasms and resisting
realities.
This also means investment in the
segregation we can shorten the way to
development of clusters in order to We need to counteract segregation of
integration.
develop experienced industry, trade and people from other countries and cultures
shipping and logistics and safety. This that come to, or are already established, Today, the city of Gothenburg has an
investment in the service sector is in the city. We need to develop the right economy in balance. But the challenges of
expected to have a positive impact on the conditions for college and university big demographical changes will have to be
labour market, not only in volume but also students, and build technical clusters to managed over the next 10 years. Today
in terms of attracting young people. support the development of the harbour. there is the space to try different pilot
We also need to focus on: city planning, models to gain experience, create
Communication between politicians and
developing the city centre with functioning alternatives and stand steady in the
citizens will develop new channels, e.g.
local markets and excellent presence of change. We cannot stand still
through IT. The 24-hour society will create
communications within the city as well as but instead we need to make quality
other demands on content and
in the region. changes, test out different ideas and
accessibility. There will be a tendency to
create the right political response to the
investigate individual questions of fact
challenges that lie ahead.
rather than a dialogue of ideological
general character.
Mr David Jongen
City Manager of the
City of The Hague,
The Netherlands
Peace Palace,
The Hague
Together with Vienna and Global and international trends Energy supply and climate change are
Geneva, The Hague is known issues that should not be discounted
Global economic development is a key
either. The production of sustainable
for the UN-activities taking trend. Outsourcing to low-wage countries
energy will be an important issue in the
place within its borders. will strongly influence the economic
next few years.
position of Western European cities.
The Hague wants to build on
These cities face considerable socio-
its image of the international economic problems, and a strong Internal trends
city of justice and peace. economy is required to address them. The consequences of international
There is also a major risk of a knowledge differences and terrorism strongly affect
According to David Jongen, drain to low-wage countries and a lack in public safety and its perception by people
city manager of the city of The Western Europe of the innovation locally. To become a stable society, the
necessary to create a high-quality integration of foreigners is necessary.
Hague, innovation, integration
knowledge economy. Although the influx of foreigners has
of social and economical
Another important international trend is of decreased over the past few years in The
issues, citizen participation and Hague, it is still considered a priority for the
course the recent accession to the
excellent public services are government. This calls for a strong
European Union of a number of countries,
key issues for the Hague. which will result in larger migratory flows. government. A strong economy can also
Within The Netherlands the integration of help in this respect. An ageing population
foreigners in society is a major issue at and the size and make-up of the working
the moment. population are problems that the economy
will need to deal with in the next few
decades.
External and internal challenges Consequences for the city Ensuring that the City of The Hague
comes to occupy a different position in
The only way to address the developments The external developments outlined above
the area;
described above, and to address the will impact on the:
international competition between cities, is Focusing on communities;
Development of a high-quality workforce
for the four large Dutch cities in the western
with different skills. This is translated Becoming the most customer-focused
urbanised part of the Netherlands (i.e.
into recruitment and HR policy for municipality in 2006, delivered through
Amsterdam, Rotterdam, Utrecht and The
current staff; one-stop shops and e-government;
Hague) to work in close cooperation. These
cities will have to develop a joint strategy, Further participation in InAxis, a Implementing targeted competence
while retaining their own individual images. programme set up by the Dutch management;
government to promote innovation in
Cooperation is also very important in the Conducting adequate financial
the larger urban centres through the
greater area around The Hague. management. Efficiency will become
development of tools (such as the
Cooperation between local authorities in this more and more important; and
innovation monitor, expert support,
area has been difficult, but this is now
experiments). The Hague plays a Leadership based on accountability,
changing. A joint 2020 strategy for the area
pioneering role in this regard; transparency and integrity.
is being prepared. This strategy will initially
cover spatial planning but will be broadened Development and implementation of a
to cover social and economic issues as well. comprehensive policy. This means that
municipal services will have to work
The Hague wants to build on its image of
together and resolve area and
an international city of justice and peace.
community-specific problems. This
This will impact on both the quality of life
certainly applies to the more physical
it offers and its international
and social services; and
competitiveness. The associated risks are
a physical lack of space, controllability of The citys financial position. This aspect,
immigration from the new EU Member which is reflected in reduced tax
States and cooperation with the other revenues, fewer subsidies and a
local authorities in the area. decrease in proceeds from the sale of
land, will need to be considered.
Development of sufficient knowledge and
innovation in the area are preconditions in
this regard. The Netherlands is currently
Priorities in the next decade
losing its position as an innovative country. To meet the challenges facing The Hague,
The Westland area is a good example of it will focus on the branding of the city,
developing innovation; it is situated near the execution of the joint strategy and the
The Hague and is a centre of bio- improvement of municipal organisation
technology. In the fields of greenhouse and services. The following points in
horticulture and bio-technology, the particular will be priorities:
Westland is an example to the world. The brand International City of Justice
Other challenges are: and Peace. International lobbying will
achieve the aim of persuading
Prevention of segregation (ethnic as well
international organisations active in this
as income-related);
field to relocate to The Hague. It is also
Increase in the citys customer focus. In very important that The Hague should
2006, The Hague aims to become the further develop relevant international
most customer-focused city in the education;
Netherlands. The development of e-
government and ICT play major roles in Fleshing out the 2020 strategy together
this ambition. This has been fleshed out in with the greater The Hague area, which
programmes. It is also a factor in hiring will result in large-scale urban renewal
new staff; and with mixed-income and ethnically
integrated communities. Public Private
Citizen involvement, immigrants as well as
Partnership is a very important success
natives, in the development and
factor in these efforts;
implementation of policies, but also in
maintaining facilities in their own
communities.
Mr Pascal Moloi,
City Manager,
Johannesburg
As the destination for the FIFA Global and international trends The emerging global city perspective as
Soccer World Cup in 2010 espoused by the Province of Gauteng and
There is an increasing debate about the
its municipalities, places the long term
the first time it will be staged in form that city administration will take in
view of the city in a different light. It
Africa Johannesburg will see the future. We are witnessing the
envisages greater coordination,
development of more complex city
its profile raised in the next few cooperation and integration between the
regions and a single-tier of metropolitan
years. The World Cup will also government, away from the district
city and key stakeholders. Stakeholders
provide the impetus to improve municipalities of the past.
include other spheres of government,
the citys infrastructure and the business and communities. The
perspective does not in the short term
city expects a significant boost Internal trends suggest any changes in the institutions of
to its economy. South Africa hosting the FIFA Soccer government but suggests greater impact
World Cup tournament in 2010 will make of government offerings to make cities
We spoke to Pascal Moloi, City Johannesburg a fundamentally different more globally competitive. The world cup
Manager of Johannesburg place. These differences are driven by offers a pilot project to foster such a
significant infrastructure development in, perspective.
about his hopes for the city and
amongst others, the areas of roads, water
the challenges it faces to make and electricity as a result of the
them a reality. tournament being held here.
Ary Fossen,
Mayor of the
City of Jundiai
Jundiai is located 63 kilometres At the same time, there has Global and international trends
north from So Paulo City in never been so much effort The contemporary changes to the world
south eastern Brazil. The main dedicated to improving the have been affecting the cities directly, and
industries include steel, textiles, quality of city life. New planning therefore cannot be considered
adjustments to the economical
wine, hardboard, cement, and tools, urban interventions, and
globalization, but instead multiple
pottery. Jundai is one of the greater levels of involvement by changes with structural effects. The
cities that make up the So the citizens are all driving statistical numbers are significant: in
Paulo City industrial complex, improvement. 1990, there were 2.4 billion people living
the biggest industrial area in in urban centers in the world, in only eight
South-America. We talked to Mayor Ary Fossen years this number has jumped to 3.2
billion. The cities of today consume three
about the challenges for
quarters of the worlds energy and are
The cities of the world are Jundiai and their strategies for responsible for at least three quarters of
experiencing constant and the future. the global pollution. The city is
rapid change and forecasting responsible for the majority of the worlds
future needs is becoming industrial consumption. In the developed
increasingly difficult. nations the population is declining, in
contrast to the developing nations, where
the population is rising. Due to this
population explosion in the urban centers
in the developing nations adding to the
economical development and migration of
population leaving the rural regions has
lead these cities to a rapid expansion.
The majority of this population lives in External challenges Issues such as traffic congestion are
irregular land occupations, where potable among the items on the current city
Population growth in the urban cities
water, water treatment, and electricity are agenda due to the high number of
due to the migration of people from the
non-existent. vehicles per inhabitant and the complex
interior. Increasing the risk of urban
city road network. Other issues include
If the cities represent the smallest scale quality of life degradation;
transportation, law and order, water
on which the environmental challenges Difficulty in monitoring urban land treatment services and health.
are identified, it should be the first place occupation;
to address these same issues.
Unsustainable exploitation of natural
preservation areas;
Internal trends
Law and order problems due largely to
In Brazil, even though population growth
the proximity of the city of Jundia to
is predicted to fall by 2025, the high rates
two major urban centers (Campinas and
of urbanization recorded: 61%, in 1975;
So Paulo); and
81%, in the year 2000; and estimated
growth of 88 - 94% in 2020 Create public participation channels, to
(Environmental Ministry, 2000) means that provide the development of a political
our cities will face continued pressues. culture, consolidating the principles of
This rapid urbanisation, characterised by
democracy and transparency.
disorganised growth, imposes several
problems on cities, such as difficulties in
planning and in providing services to
Internal challenges
meet growing demand, obsolete Need for coordinated regional action to
infrastructure, and consequent recuperate and protect the hydrological
degradation of urban natural environment. reserves that are of public interest;
These tendencies justify investment in Lack of clear land occupation criteria to
sustainable planning for cities. The prevent clandestine land occupation;
current urban challenge is the
organisation of space, not to suppress, The existence of considerable urban
but to provide a dialogue channel vacant areas that contribute to high
between different ethnic groups, social costs for maintenance;
classes, styles, permitting communication Increase in the amount of traffic in the
between public and private spaces, and city center. The city center is no longer
revitalizing the relationship between the an end point for the traffic path but a
individual, the collective and nature. transition place; therefore there has
been a tremendous increase in traffic,
In terms of Jundia, where these
noise and air pollution; and
tendencies are under control, at least for
now, one important latent issue is the Increase the development of tourism.
necessity to integrate the city to the
region. This integration should take place Priorities for the next decade
in the problematic management issues,
The environment is by far the greatest
such as, water treatment, health,
issue of 21st century. The Agenda 21,
transportation, and law and order. Cities,
approved by the United Nations for
with smaller economies, and
Environmental Development (Rio-92), has
consequently less power to resolve their
included clandestine land occupation as
own issues, end up depending on the
an environmental problem, since it is
services of neighboring cities that have
directly related to natural environment
more resources to offer, and this is the
degradation and loss. Land occupation
case of Jundiai. Regional integration is
management is a city priority.
one of the challenges that the city of
Jundiai faces today and in the future.
City of Krakow
main market square
A major internal challenge the city faces is culture, some of Krakows most important
the lack of updated special development strengths are: a high level of education at
plans. In some city districts this the universities, highly qualified people
represents a real barrier to growth and and the high credit rating of the city
development. Other challenges include (BBB+) which enables access to domestic
ineffective co-operation between the and international financial markets. The
education system and business and the strengths should continue to be
slow transfer of technologies. There are developed to the benefit of the city and its
also insufficient attractive employment citizens.
opportunities for young people. This has
Although in Krakow there is a relatively
resulted in the migration of a number of
low level of unemployment, there is still a
skilled and talented young people to
lack of attractive employment offers for
Warsaw or other European Union cities.
young people. Therefore Krakow will
Another important internal challenge is the
emphasise bringing in new investment
poor quality of housing estates built in the
and consequently creating new, attractive
1960s and 1970s.
jobs.
Lige is the chief town of the In a region in the process of Global and international trends
province of Lige, with more complete renewal, Lige has After more than 30 years of major change
than 1 million inhabitants. Lige unveiled a city project for 2003- in the industrial landscape, Belgian
is also the centre of substantial 2010 and its vision for the institutions and the European
environment, the city of Lige faces two
social, economic and academic province for 2020. We
main challenges: how to transform its
activities. Nearly 60% of the interviewed Mr Jean- political ideals into practical actions to
European Unions purchasing Christophe Peterkenne, Head benefit its citizens; and how to promote
power is concentrated in a of Strategy, City of Lige, on the city in an increasingly international
radius of 500 kilometres. This the major challenges and environment.
radius, known as the Euregio opportunities this historical city These changes also bring a number of
Meuse-Rhin, includes the faces and how it is responding opportunities through, among others: the
province of Lige, the to them. slow but inescapable process of re-
provinces of Limburg in urbanisation; clustering with the
Belgium and in the neighbouring cities beyond Belgiums
borders; the growth of a new economic
Netherlands, and Aachen in
sector; and the availability of new efficient
Germany, and shows the infrastructures to attract entrepreneurs. To
importance of this European take advantage of these opportunities, the
region. city will need to reposition itself relative to
its bordering regions, while using the
budget and resources of a middle-class
city.
Internal trends Consequences for the city All these activities require stringent
In view of these challenges, the city drew supervision, a new type of collaboration
In this difficult environment the city has
up a strategic plan to be achieved by between the plans architects, and a lot of
taken a pro-active stand. By drawing on
2010. The plan revolves around 10 major creativity and entrepreneurial spirit.
its strengths and support from various
themes and 16 clear objectives, to be academic institutions through which new
achieved under various action plans. The
economic activities have been derived, it
Priorities for the next decade
architects of the project and the citys In the next decade, and probably beyond,
has taken full advantage of opportunities
officials worked together to come up with
in the logistics sector and successfully the city will continue to work on the
a series of key words that the plan
promoted the citys vibrant culture, which following themes:
encapsulated: cleanliness, security,
mobility, dynamism, teaching, culture and is rooted in the regions idyllic landscape. General modernisation of its operations,
tourism, solidarity and tolerance, including ensuring professionalism
Some new infrastructure has been built.
internationalisation, and importantly, among its staff;
This includes new entertainment centres,
quality public services. The latest
development is an essential
a new TGV station will be fully operational Improvement of the quality of services
by 2007, an upgraded airport and a real and the establishment of new
rearrangement of the citys services,
which involves the development of a logistics centre. The citys academic infrastructure;
quality culture, the modernisation of institutions have also merged to exploit
Alignment of the citys actions and
functioning processes and the fully economies of scale. The citys plans with the political outlook of its
decentralisation of some services. services are continually improved and citizens;
modernised, with an emphasis on security
Internal and external challenges and cleanliness. Finalisation, acceleration and actual
operation of big infrastructure works,
In this changing environment, the city The citys citizens are being mobilised as which will inject vitality into the city,
needs to modernise its services, well. Their awareness of the importance of boost its attractiveness, and bring it
particularly as more than one-third of its the financial institutions has increased and closer to the bordering regions and
state employees are due to retire soon. A they have been supportive of further
group of state directors, led by the even its more distant neighbouring
initiatives such as Lige 2020 or the
secretary-general, are in charge of the European countries;
Euregio. A master plan for economic
citys principal functions and are development was drawn up some years Search for positive cooperation on the
spearheading this transformation. ago and has gained widespread Big Lige development, with the
Departments are being re-grouped by acceptance and is picking up speed. Walloon region which will be
services. We are paying particular
a major source of finance, and the
attention to the valuations involved and
cross-bordering territories, which have
are focusing first on a general-level set
already experienced the benefits of
up. It is important to recognise that some
tools of modernisation have to be set up such cooperation; and
progressively. Strengthened collaboration between the
public, part government-owned,
In dealing with the citys external
economic, financial and academic
challenges, the plan promotes the
agents.
establishment of modern infrastructure,
moves closer to the province, sensitising Finally, Mr Peterkenne concludes; At the
the Walloon region, and integration in cornerstone of the region the city of Lige
cross-border processes, such as in the is ready for new challenges.
Euregio.
The London Borough of The borough will be the home Global and international trends
Newham is a thriving area of the London 2012 Olympic Establishing Newham and Stratford in
which is undergoing a Games, providing the focus for particular as a first class tourism and
remarkable transformation an ambitious programme of international business destination lies at
the heart of the councils plans. Stratford
rapidly emerging as a centre of regeneration across the
is set to become the new international
commerce and culture. borough. gateway to London with a new
Situated just three miles east of International Passenger Station the first
the financial heartland of the Regeneration and ensuring London stop on the Channel Tunnel Rail
City of London, Newham is one there is a lasting legacy for Link is now under construction. From
of the most ethnically diverse local people is at the heart of 2007, high-speed trains will arrive from
Paris and the continent in two hours and
areas of the UK. Newham Councils plans. Sir
15 minutes.
Robin Wales, Mayor and
member of the Board for the Borough leaders hope that passengers
2012 Olympic Bid, talked to us arriving at Stratford will choose to stay in
one of the many new hotels and enjoy the
about the opportunities and
burgeoning nightlife and entertainment in
challenges facing Newham. Stratfords fast developing cultural quarter.
The new Stratford City development
providing 4,500 new homes and a retail
development, married with its existing
historic town centre, will ensure Newham
becomes a vibrant, international area of
opportunity adding a new dimension to
Londons world city status.
The majority the 26 sports competitions in Driving forward the development of the The council places great emphasis on
the London 2012 Olympics will take place borough is the Newham 2010 Partnership. listening to and understanding its
in Newham. Many of the new, state-of- Bringing together business leaders, public communities. A network of community
the-art venues will be retained after the agencies and community representatives, forums ensures that the people of
Games for community as well as elite each member is working towards a Newham are centrally involved in shaping
sporting uses, and new housing and common vision: By 2010 Newham will be their future and creating an environment in
business parks will abut what will be the a major business location, a place where which they want to live. The council also
largest public park to be built in the UK people choose to live and work. places great emphasis on researching the
since the 19th century. needs of the community, especially on
Major employment growth is occurring in matters relating to access to work. The
The council has been instrumental in the hospitality, tourism, retail, Mayor believes that this information is
ensuring the London bid was successful. construction, engineering and architecture vital in helping to shape policy and local
A key partner in the bid team, it enabled sectors. As local companies grow and services to meet the needs of the citizens.
and facilitated land acquisition and fresh businesses arrive, attracted by the
planning permission. Sir Robin Wales is in affordable office space and extensive Transforming Newham has required
no doubt that the games provide a unique transport infrastructure, job opportunities sustained efforts from its leaders and
opportunity for Newham, but he also are increasing steadily. citizens. Sir Robin Wales believes that it is
recognises the responsibility that the his role as the directly elected Mayor to
council and its partners face in ensuring Through the Access to Jobs Partnership, provide good quality leadership to the
world class facilities are delivered on time employment and business organisations local community and to hold elected
and on budget. The Mayor is confident are coordinating their efforts to ensure representatives and partners to account.
that the games will be a credit to the that local people have the skills necessary Newham is only one of eleven boroughs
Olympic movement, but he is also to take advantage of these opportunities to have a directly elected local Mayor, this
determined that they provide long lasting through innovative education and training he believes has been helpful in providing
benefits for the people of East London. initiatives. increased legitimacy with local partners.
The councils business development team
Internal and external challenges focuses on key growth sectors (creative Priorities for the next decade
Tackling the gap between poverty and industries, construction and Clearly, the decision to award the Olympic
wealth is a major challenge for Newham. manufacturing) and assists local firms to Games to London offers a once in a
The changing nature of employment, capitalise on the extra trade that generation opportunity to transform the
international migration and a traditional regeneration brings to the borough. landscape and lives of the people who
low skill economy has meant that Through specialist business support and live and work in Newham.
Newham has suffered disproportionate supply-chain development, together with
levels of unemployment and social regular workshops, business forums, The council is determined to seize the
deprivation compared to the rest of the showcase opportunities and a opportunity to build a sustainable,
UK. Newham is one of the most deprived comprehensive business directory, the inclusive community with wide-ranging
boroughs in the UK. Across, the borough, team provides a range of services to social and economic benefits for the
more than 100,000 adults are on benefits businesses, whether established or start- boroughs residents.
and almost two thirds of children grow up up and helps them to maximise their
in poverty. Newham also has one of the growth and competitiveness.
youngest and most diverse populations in
Just as the economy is improving, so is
the UK. Over 40% of the 254,000 people
the social infrastructure, with more
are under 25 years old and more than 100
affordable housing, better leisure facilities,
languages are spoken locally from
new schools and improved transport links
Albanian to Zhuang.
all contributing to a better quality of life
New infrastructure, new businesses and for residents. The borough now boasts
thousands of new homes have begun to some of the countrys fastest improving
transform the landscape in Newham. schools and Newham Council is
Providing access to these new jobs, skills increasingly recognised for its innovative
for work and affordable housing are key approach and quality services.
priorities for the council.
Westminster City Council is the The greatest challenge for Global and international trends
local authority serving the heart Westminster is to reconcile the The pressures that London and the City of
of London. It includes the need to provide a first class Westminster in particular face are not
capitals principal areas of quality of life for residents with unique, but it has to be acknowledged
that it does share particular
government, shopping, the need to accommodate and
characteristics and challenges with a
entertainment and tourism and meet the requirements of its small group of world cities including,
the headquarters of many visitors. We spoke to Cllr among others, Tokyo, New York and
innumerable commercial and Simon Milton, Leader of Shanghai. The council has always sought
professional organisations Westminster City Council about to forge partnerships and learn from the
together with extensive how the council is responding experiences of others and recently carried
out a peer review of its performance with
residential areas of all types. to this challenge.
Baltimore, USA. It has also undertaken
The resident population is the Global City Management Survey with
around 220,000 but it is 42 other cities to identify common
estimated that about 1 million interests and best practice in managing
people set foot in Westminster global cities.
at some time during the day. It As the UKs political and tourism centre,
is also one of the UKs premier Westminster is particularly vulnerable to
tourist destinations, and it is terrorist attack, as the events of 7th July
estimated that 95% of Britains 2005 sadly confirmed. The Council along
annual 28M tourists pass with public sector partners had been
working hard to ensure that the city was
through the city.
as prepared as possible for any
eventuality. All of Londons emergency
services and local authorities have been
universally praised for their swift, calm residents have equal opportunity and The council has also invested heavily in
and professional response to the attacks. access to quality services, jobs and new technology to achieve efficiency and
The city council and partners now have an affordable homes forms the second part productivity gains, for example staff have
on-going task to ensure residents and of the councils agenda. been provided with hand held computers
visitors feel confident to live, work and to record and process information as they
visit London. Access to affordable housing is a work on-site, saving substantial time and
particular issue for Westminster residents. resources. The council also places strong
The council has set a new 100m plus emphasis on performance management,
Internal and external challenges fund for affordable housing as a result of setting challenging targets to manage
Westminster is a vibrant 24-hour city, with the sale of property assets elsewhere in costs downwards whilst still achieving
the largest night time economy in Europe. the city. The fund, is the largest affordable good quality outcomes for its citizens.
The streets around entertainment zones housing fund ever created in the UK.
can be very noisy and there are increasing Administered by a charitable trust, the
levels of anti-social behaviour often driven fund will be targeted at providing a range
Priorities for the future
by alcohol abuse. The centre piece of the of new housing opportunities in addition Civic Renewal, the five-year programme,
councils agenda is maintaining order to those offered by other public sector provides a platform through which the
tackling crime and the fear of crime. providers. The fund will allow the council Council will regenerate the social,
Programmes such as CivicWatch a to move away from the traditional social economic and physical infrastructure
programme to tackle anti-social behaviour housing tenure to more innovative of Westminster and make Westminster an
and poor environment and a new anti- schemes promoting home ownership, example of world-class city management.
social behaviour hotline help council staff shared ownership, supported housing for
to respond quickly and effectively to older people and other forms of
incidents. intermediate housing.
The council has also recently entered into In order to tackle the pockets of severe
an innovative partnership with British deprivation amongst Westminsters
Telecom, Intel and Cisco to create a minority ethnic communities, the council
Wireless City which allows Closed Circuit is setting up a new Minority and Smaller
Television (CCTV) cameras and noise Business Council. The council believes
monitoring equipment to operate over a the best way to raise people out of
wireless network. This means that the deprivation is to give them renewed hope
system is flexible enough to respond to and a greater stake in the future welfare of
sudden outbreaks of criminal activity. New their own neighbourhoods.
cameras and equipment can be installed
at very short notice and low cost. Westminster council has an exemplary
record in delivering good quality, cost
Improving the local environment is effective services, and was awarded the
another key part of the councils agenda. prestigious Council of the Year Award in
Using innovative Global Positioning 2004.
Systems (GPS) technology developed
specifically for the council, the council can Keeping local taxes as low as possible is
track and monitor all cleansing vehicles as the third part of the councils agenda. On-
they collect rubbish from across the city, going financial pressures across local
allowing refuse collection teams to government means that the council needs
respond to problems as they happen. to seek ever more innovative and creative
ways deliver its services. Innovative
Westminster has an extremely diverse outsourcing arrangements mean that 60
population. 51% of residents were born services, employing 400 people are now
outside the UK, 30% of the population are delivered by the private sector and a
from black and ethnic minority customer call centre, which has handled
communities and over 150 languages are four million calls in the first two and a half
spoken. Westminster contains some of years, providing a high quality service to
the UKs most prosperous citizens. The council is also investigating
neighbourhoods, but there are also high options where it can trade services, that
levels of social deprivation. Fostering is, deliver and manage services on behalf
good community relations and ensuring of other public sector bodies.
Mr Paul Helminger,
Mayor, Ville de Luxembourg
The City of Luxembourg is the We talked to the City Chief Key challenges
capital of the Grand Duchy of Secretary, Mr Georges Fondeur Deploying eGovernment by connecting
people and simplifying interaction with
Luxembourg. The city has about the city branding, the the city;
85,000 inhabitants of whom future challenges and trends for
Alleviate traffic congestion;
60% originally come from the city.
Stimulating life in the city (attracting
outside of the Grand Duchy. residents to live in the city centre);
About 120,000 people from the
The impact of deregulation in the
neighbouring states of Belgium, energy market and the consequences
France and Germany flow into for city revenues (the city is the main
energy provider);
the city each day for work. The
city government has an overall Managing costs and improving
productivity; and
budget of 600 Million and
Attracting qualified and experienced
employs 3,300 people.
employees.
The city is governed by the city Luxembourg is a city with a rich history
council (27 members) and the (founded in 963) and it boasts many
remnants of its turbulent past such as a
city board (7 members) which is
fortress (now a UNESCO World Heritage
chaired by the Mayor Mr Paul site). The historic setting, the proximity of
Helminger. its neighbouring countries (France,
Germany, Belgium), the cultural offerings
and happenings, the international External and internal challenges Priorities for the next decade
business environment with its multicultural
Deregulation of the energy market is the To plan for the future, the city of
workforce, the attractive business
most important financial challenge for the Luxembourg is mapping out a strategy in
environment, as well as the presence of
city of Luxembourg. Indeed, the city was the form of an urban development
major EU institutions: these are all
the sole supplier of electricity and gas plan (IVP: Integratives Verkehrs- und
reasons why the city of Luxembourg
within the citys borders and generated
attracts people from all over the world. Landesentwicklungskonzept), which
substantial turnover and profit from this
includes traffic organisation, construction
activity. In the 2005 budget, revenues
Branding the city and urban development projects. In order
from energy (including water) represent
the second largest source of income for to exploit synergies, this plan is being
Besides being an important financial
centre, the city sees its attractiveness in the city, only second to commercial taxes. developed in close cooperation with
two areas: tourism and art & culture. neighbouring cities. The development of
The city currently employs about 3300 the University of Luxembourg will
Mr Helminger has put every effort into people and strongly encourages its staff be another key priority on the city
developing the cultural offerings in the city to enrol in vocational training programmes managements agenda, which should
by creating Une Ville dexpositions a (life-long learning) thus encouraging
foster the development of Luxembourg
city of exhibitions. Luxembourg city was employees to develop. Nonetheless,
into a city of sciences and research.
the European City of Culture in 1995 and attracting highly qualified and experienced
will be again in 2007, together with other people from outside for high-ranking jobs
cities located in neighbouring countries represents a real challenge for the city.
(what is known as La grande rgion). To
The city of Luxembourg has about 85,000
further promote and develop its brand, the
inhabitants, but during the day businesses
city has decided to create the job of city
attract around 120,000 additional people.
manager. This person will be responsible
This fluctuation of people has an impact
for the coordination of all these cultural
on social life, being very busy throughout
activities and events.
the day but less active in the evening.
In comparison with its nearest neighbours This is partly compensated by the
and competitors (Nancy, Trier, presence of a large international
Saarbrcken), Luxembourg is the only city community (60% of the 85,000 inhabitants
that does not yet have a fully operational are foreigners) bringing life and diversity
university. Evidently, the lack of students to the city in the evening.
negatively impacts social life in the city.
In order to alleviate heavy daytime traffic,
This has changed recently with the
the city tries to push for an increasing use
creation of the University of Luxembourg,
of public transportation by defining
which should help attract a new
several measures (no free parking). Today,
population of students and young people.
public transportation represents more
than 25% of traffic (with the exception of
Global trends: eGovernment and one area).
the relationship with local citizens
The city also focuses on the environment
The city increasingly sees the citizen as a
by working on the production of low
customer, and all the services offered by
emission vehicles for public transportation
the city are being centralised to simplify
(buses) and by using new technologies to
dealings with the city. A central agency has
produce heat and electricity, generating
been created (Biergercenter) to serve as a
30-35% fewer emissions than traditional
one-stop shop for citizens. This service
technologies.
will be further developed through the
creation of a virtual city (eBiergercenter)
offering more flexibility and interactivity
through the use of the Internet.
In the last four years alone, We talked to Ignacio Nio, the Global and international trends
Madrid has gained 300,000 General Co-ordinator of The unstoppable technological advances
more inhabitants and currently Economics at Madrid City in transport and in information and
ranks third among European Council about future challenges communication technologies (ICT), deriving
from the intensification of globalisation and
cities in terms of population. and their consequences for the
the increased competition amongst
15% of the population is Spanish capital. His aim is to companies and territories, is one of the
foreign. It is among the top-10 see Madrid as a truly international trends that will affect the city
cities in Europe in terms of the cosmopolitan city with a of Madrid over the next 10 years.
level of education achieved by dynamic international image, International competition will be especially
its citizens, with 25% of whilst at the same time being stiff in the financial sector, ICT, advanced
business services and research activities. At
Madrids inhabitants holding at the service of its citizens,
the same time, migratory pressure will
university degrees. with their increased continue to grow, with Madrid as a gateway
participation in municipal for Latin American, North African and Sub-
The vision for the city is for affairs. Saharan African migration. The context of
Madrid to become a increased global competitiveness, together
sustainable, cohesive and with a rise in world economic deregulation
will strengthen the challenge of
competitive place for business
internationalisation for companies and
and pleasure. cities. In particular, Madrid will have to find
its place in the sun facing emerging
territories in Asia (especially China and
India), Eastern Europe and Latin America, The most important internal challenges habitat through rehabilitation of the city
based on differentiation, quality and focus on the successful integration in the centre, the recovery of pavements and
innovation strategies. Tourism will also be a city of the increasing immigrant population the re-balancing of immigration by
key activity in continuous growth, in line (along with their religious and cultural districts/quarters;
with the increase in world income. Cultural values) and on the greater involvement of
and economic differences between regions civil society in the government of the city. Competitiveness: Madrid capital will
and cultures across the world will continue focus on R&D and innovation, the
to be an important factor that will threaten development of new competitive
Consequences for the city
the security and safety of the inhabitants of industries such as life sciences and
The key to respond to these challenges is
all major world cities. materials sciences, the promotion of the
the implementation of public policies by
city as a logistics nexus between
the city government. However, these new
Internal trends challenges are receiving insufficient Europe, Latin America and Africa. One
A major internal trend is the increase in land attention via the provision of budget important strategic objective is to
prices as a critical factor in absorbing, allocations, compared to traditional become the head office of international
attracting and retaining economic activity challenges such as security and cleaning. bodies and a European economic
and population. In addition, the integration In other words, the budget is not growing meeting point: business tourism centre,
of immigration is critical for preserving the proportionally in line with the rapid trade fairs, events; and
quality of urban life and harmonious development of these new challenges.
coexistence between different groups in all In addition, work will be done for Madrid
Public policy mechanisms will have to be to become the South European centre
districts of the city. The ageing of the local
more flexible, in order to meet these new for design and fashion.
population is another factor determining
challenges.
business activity and future investments in A sustainable, cohesive, competitive
the city. In order to attract investment and The participation of citizens in municipal
Madrid will be a lighthouse, a quality
people to Madrid, issues/factors of affairs will be promoted, together with the
circle of development in three dimensions:
congestion such as environmental quality, creation of social councils as participatory
bodies in local development policies. economic, social and human, in both the
traffic problems, housing and business land
prices will have to be addressed by international and trans-national arenas.
Active economic and city marketing
investing in infrastructure and urban
policies will be implemented, promoting Achieving these goals will see the city
technology. No less important is the need
Madrids key areas for its economic achieving its vision of: Madrid as a
for companies based in Madrid to evolve
future: internationalisation, R&D, sustainable, cohesive and competitive city
towards quality, innovation and the
innovation, tourism promotion, in the international arena.
appreciation of investment and R&D in
revitalisation of the urban centre,
order to preserve a leading position for
strengthening of trade, proximity, increase
Madrids economy. The risk of institutional
in economic information of the city,
relocation is also undermining one of the
dialogue and consensus with local
substantial elements of the city: its status
economic agents and co-ordination with
as the countrys capital.
other levels of administration.
Ms Inger Nilsson,
City Manager of
City of Malm,
Sweden
Malm is the third largest city We asked Ms Inger Nilsson, Global and international trends
in Sweden. It has a City manager of City of Malm, Internationalisation and regionalisation are
metropolitan population of about the most imperative the most apparent trends. Today and in
about 498,000. Malm is also a issues and visions of the city of the future we will interact more and
exchange experiences with other
part of the resund region that Malm, both for today and for
municipalities that are similar to us or
includes about 3.5 million the future. have the same problems/opportunities as
inhabitants. Today, Malm is we do. There is a great deal to learn from
undergoing a transition from an other municipalities. The fact is that they
industrial city to a city of are all public organisations with much in
knowledge. Older industries common so the opportunities to learn
something new are endless. For example,
have been replaced by
the City of Malm has about 500
investments in new technology politicians while Copenhagen has 55. The
and high calibre training question is: are we more democratic then
programmes. Malm University, they are? Probably not. Consequently, the
which opened in 1998, is most important thing becomes not to
Sweden's latest venture in the speak the same language (e.g. Swedish)
but to talk the same municipality
field of higher education,
language. Another important trend is
accommodating some 15,000 growing collaboration with the non-
students. municipality stakeholders (companies,
associations, universities, citizens and
unions.
Mr Mojalefa Matlole,
City Manager,
City of Manguang
City of Manguang
Situated in the heart of South Mojalefa Matlole, City Manager Global and international trends
Africa, Mangaung Municipality of Mangaung, shared his ideas There is a worldwide move towards the
is home to a rich cultural about the future of the city with decentralisation of government, with an
lifestyle and is a recognised us. accompanying need for the increased
melting pot of creative ideas involvement of the citizenry in the
and expression. With a activities of the municipality. We believe
population of over 750, 000 that governments need to decentralise
people, its boundaries span power to local government.
6,363 km2 and include In this era of globalisation, cities are more
Bloemfontein, SAs sixth city, than likely to compete with each other for
which is also the capital of the investments. The fact that investors can
Free State province. be attracted by various technological
means will not only provide for intense
Hospitable city, the competition between cities, but also for
congress city, the total city many more opportunities to attract
investors.
and the city of roses. All
these designations indicate that The growing prominence of cities, as well
it is a city in which not only as the role that they can play in the
residents, but also visitors and economies of national states, could well
tourists can feel at home. play a pivotal role in the rise or decline of
national states.
Internal trends A major internal challenge that we will We foresee that there will be a heightened
face is a resource capacity at a financial level of awareness amongst citizens with
South Africa is currently experiencing a
level. There is a need to have the regard to their rights and obligations. Our
consolidation of service delivery at a
necessary political and ad-ministrative aim is to foster a city of citizens that have
regional level. We are seeing this in the
coherence, resolve and the will to deal great civic pride, responsibility and a
fields of electricity distribution, water,
with this challenge. strong partnership ethos, with a vibrant
sanitation and the district health system.
cultural life. Citizens must participate
Social challenges currently centre on Consequences for the city actively and trust their service providers,
crime and safety, increased urbanization If the city does not deal with the who must operate with a culture of
and sprawl, and sustainable development. challenges it faces, it will become transparency and accountability.
There is a massive migration to the urban uncompetitive as a city and will be unable In a South African context, we expect a
centres of the coun-try, which will to attract investment. There will be an gradual phasing out of provincial
inevitably lead to the escalation of the increase in the level of poverty as well as government that will be replaced by
level of poverty. in the unemployment rate. As faith in their stronger local government, which will
We expect a significant increase in the leadership and in the government have a stronger focus on both
number of people that will be dependant structures erodes, public unrest becomes development and the economic sector.
on the informal business sector which, a very real risk.
Through our Mangaung Compact we
coupled with the high unemployment rate, Mangaung is responding to the challenge are beginning to involve both the private
will inevitably result in a housing shortage. by continuing with our strategy of bottom- and the non-profit sectors for the
Public Health remains a major concern up planning, which is also used for spatial betterment of our economic growth. We
not only the HIV and AIDS pandemic (the development planning. need to enter into partnerships with the
rate of infection in our province is On a political level we have signed the private sector in order to finance our
estimated at around 30%), but also other Mangaung Compact, which aims to infrastructure.
illnesses such as tubercu-losis and ensure a harmonious working relationship We have recently established a
malaria. between the city, the provincial Knowledge Management Centre, which
government, the district municipality and has strong ties with the SA Cities Network
External and internal challenges the private sector in addressing the and the Development Bank of South
One of the biggest challenges that we challenges that face the city. Africa. Sharing of knowledge, innovation
face is in the field of intergovernmental
We are also embarking on an institutional and best practice are key to our future
co-ordination, both as an approach and
and financial reform programme in order success.
as a strategy. This is due to the fact that
to stabilize the organisation and to put it As we realise that the challenges facing
we have to drive co-ordination with both
on a good financial footing. Unlike in the cities globally are similar, we will all be
the provincial government and the district
past, we visualise a greater role for the able to learn from each other.
municipality on the issue of how we deal
city in the area of economic development.
with matters of government as well as
ensuring that the different governmental Promotion of the city and priorities for the
institu-tions do not duplicate services. A next decade
part of this daunting task is to deal with
the powers and functions of the different Our vision is for Mangaung to be
spheres of government. recognised nationally and internationally
as a safe and attractive place to live, work
A further challenge is around the issue of and invest by 2015.
capital investment, as we need to inject
more funding into our infrastructure, which We have already embarked on an
in turn is supposed to drive the economy aggressive marketing strategy under our
of the city. pay-off line of city on the move.
David Pritchard,
Chief Executive,
City of Melbourne
Melbourne is the capital of Global and international trends Despite the advent of international
Victoria and the host of the terrorism Melbourne continues to attract
Global economic, industrial and political
international students. Other international
2006 Commonwealth Games. trends affect the economic and social
concerns such as the SARS outbreak had
With 3.6 million residents, it is climate of the City of Melbourne and
a short-term impact on the level of
inform its vision for the future.
also Australias second largest corporate travel and tourism, but
city and a vibrant centre of China has become the outstanding international visitor numbers recovered
commerce and innovation. success story of our times and, in the quickly and have continued to grow.
next decade, will likely become the
worlds third largest economy.
This article is based on the Internal trends
response from Mr David Melbourne is the only Australian city with The Central Citys population has doubled
a dedicated office in Tianjin and the sister- over the last ten years and is projected to
Pitchford, Chief Executive, City
city relationship generates solid financial double again over the next 20 years. This
of Melbourne. and social rewards. It has taught will increase pressure on the environment.
Melbourne a great deal about the benefits Reducing water use, energy consumption
of building global relationships. and greenhouse gas emissions are critical
External agencies consistently rate to the citys sustainability.
Melbourne as one of the worlds most
The Docklands development will also be
liveable cities. Its inclusive, cultural life is
completed and handed back to the City of
one of its key competitive advantages.
Melbourne from the State Government in
Melbourne is also a global attraction for 2008, giving the city a major waterfront
learning and knowledge, home to nine and doubling the size of the central
universities and 32% of Australias business district.
international students.
In 2006, Melbourne will host the Common- Mr Pitchford believes that care must also Under construction next door to the Town
wealth Games, which will bring 90,000 be taken to protect the unique feel of the Hall, the new Council Administration
overseas and interstate visitors and present city, its streetscape, active spaces and building, CH2, has been awarded
the city to a billion television viewers. wonderful parks. Australias first six-star green rating and is
Financial issues impact the City of set to become the greenest multi-story
Melbourne and the Council faces pressure Priorities for the next decade office building in the world, a feat people
to keep local taxes low. Adding to this The next decade will see many everywhere will want to see in action.
pressure is cost shifting by State established cities face the social change
Government to local government. The city is and economic challenges created by an
assessing the potential to increase revenue
ageing population, skills shortages,
from sources other than local taxation.
immigration and population movements.
In addition to keeping taxes low, the city is
also focused on providing quality services The City of Melbourne has produced the
tailored to the needs of the community. City Plan 2010 which sets out the Citys
vision and agenda for the future. Its vision
External and internal challenges is for a thriving and sustainable city,
achieved by the simultaneous pursuit of
A major challenge for any city is to
economic prosperity, social equity and
maintain social equity and avoid a
polarised society. Decreased interaction environmental quality.
amongst a citys population can increase The citys business focus is on innovation
social problems and divide its community.
and specialisation in its areas of
Accessibility is also an important issue for comparative advantage including,
Melbourne as the number of visitors to financial services, advanced
the city each day is ten times the number manufacturing, life sciences, bio-
who live in it. Visitor numbers increased technology, education, environmental
25% over the last four years and are management, health, and tourism.
projected to increase by 17% over the
next four years. In order to be competitive in the knowledge
The councils aim is to maximise sector, Melbourne will need to support its
opportunities for all members of the highly skilled workforce and ensure it has
community to enter the city and expand the ability to respond quickly to change.
transport options. It is focussed on reducing
It is also essential to ensure the city
through traffic and commuter car use.
remains safe, attractive, inclusive and a
great place to live.
Consequences for the city
The council must continue to develop and But we need to build on our quality of life
offer programmes to support businesses and set new benchmarks in sustainability,
both locally and in export markets by liveability, creativity, innovation, education,
using its information, contacts, experience safety and prosperity.
and infrastructure.
The City of Melbourne is acting on
As the citys residential population increases, environmental issues and challenges by
noise pollution becomes a greater concern.
aiming for Net Zero Emissions by 2020. It is
Noise management initiatives and control
also sensitive to the global issue of access
guidelines are underway.
to water and plans to reduce water
Estimating the needs for future services consumption by 12% by 2020. The City is
and infrastructure development is also a also introducing sustainable water polices,
challenge, particularly given central guidelines and training across the city.
Melbournes rapid development and
population growth.
City of Montreal
US economic conditions Internal trends The city must also tackle employment
US economic conditions directly affect the The city of Montreal faces the following migration caused by factors such as:
economic vitality of all major Canadian major internal challenges: Low cost jurisdictions; and
cities, including Montreal. Increased
military spending and the burgeoning
Low competitiveness and productivity,
Socio-demographic trends even if Montreal is well-known for the
budget deficit in the US is putting upward
An ageing population is affecting Montreal quality of life it offers (quality
pressure on interest rates.
as in other major urban centres. In 1986, infrastructures, high level of safety, an
Furthermore, this has weakened the US people in the over 65 age group effective mass transit system, quality
dollar against other currencies, including represented 12.8% of Montreals total healthcare, access to capital). This can
the Canadian dollar which has shot up population; however, this figure rose to
prevent the city from welcoming and
about 30% in recent months. Foreign 15% in 2001, a trend that continues.
retaining a qualified immigrant population
investments in Canada and exports have
An ageing population and slow to occupy value-added positions within
been affected, not only by the increase in
demographic growth in urban centres in key sectors of its economy.
the value of the Canadian dollar, but by
industrialised countries have forced
the speed at which it has taken place, Another approach in increasing economic
politicians to place more weight on
which has prevented companies from growth is to offer major financial
international (qualified) immigration and
fine-tuning their strategies in time. incentives to attract companies, a
the attendant consequences on housing
and social cohesiveness and integration. strategy that has been noted with
These conditions can have an impact on
employment levels in the country. increasing frequency in the US.
The ever-widening gap between social
However, in 2004, the Canadian economy At the same time, there is the serious
classes is another trend that is affecting
performed very well, particularly due to issue of the underfunding of Quebecs
and will continue to affect Montreal in
sustained growth in the housing sector, universities.
terms of urban development and social
consumer demand and company
cohesiveness.
investments. In this connection, it must be This lack of funding could have an impact
noted that the rise in the Canadian dollar over time on Montreals ability to fully
gives a substantial advantage to External and internal challenges embrace the knowledge-based economy.
companies that acquire goods and Montreals main challenge is to increase
services in the US to increase their A different concern is Montreals
economic growth to generate a gross
productivity. overdependence on the US economy and
domestic product (GDP) per capita
susceptibility to its fluctuations. 42% (in
greater than the continental average,
value terms) of exports outside the city
Sustainable development which requires it to:
are destined to the US. The citys
Countries and cities, particularly those
Raise the rate of those holding university challenge is therefore to diversify its
that offer an environment and a better
degrees in the 25-and-over group; export markets by making itself better
quality of life while taking a balanced
approach to economic vitality, social Attract and retain new qualified known and improving its position
equity, environmental protection and immigrants; elsewhere in the world in niches where it
respect for the needs of future has comparative advantages.
Increase the business creation ratio;
generations will be best equipped to
Improve first-line services to Current governance arrangements within
deal with worldwide competition.
businesses; Canada represent a challenge to all cities
In this respect, it is worth mentioning in Canada. There is a clear mismatch
Modernise urban infrastructures;
Montreals Blue Network, Montreals between local government accountability
Green Project, the protection of Montreals Foster demographic growth; and the expectations of community
historic and national district of Mount Reduce the proportion of the population residents for a responsive government
Royal, amongst others. Montreal is also that is economically fragile; and that will look after their interests.
very well-known for its multiculturism.
Select excellent niches for exports, This challenge is exacerbated by the fiscal
particularly in areas where demand from imbalance between local government
the US is relatively strong and where responsibility for front-line social programs
Montreal already is at an advantage. and the fiscal resources and fiscal capacity
to address those responsibilities.
Ms Vuyo Zituman,
Municipal Manager,
Nelson Mandela
Metropolitan
Municipality
Mr Alexander
Konstantinovich Meleshkin,
First Deputy Head of the
Municipal Administration
and Vice-Mayor of Nizhny
Novgorod
Nizhny Novgorod is the centre We spoke to Alexander Global and international trends
of the TransVolga Federal Konstantinovich Meleshkin, Globalisation of business is one of the
Region (one of Russias seven First Deputy Head of the most significant trends impacting the
federal territories), capital of the Municipal Administration and development of Russian cities in general,
and Nizhny Novgorod, in particular.
Volgo-Vyatka economic region Vice-Mayor of Nizhny
Nizhny Novgorod is perceived as an
and administrative centre of the Novgorod, and asked him attractive place for business by Russian
Nizhny Novgorod Region. about the opportunities and and international companies alike due to
Nizhny Novgorod is Russias challenges his city faces. its position in the centre of the TransVolga
major industrial and scientific federal territory and its high industrial and
city and rates among the top- research and development (R&D)
potential. Many large companies, such as
five cities in terms of its
Lukoil, Bazovy Element and Intel, have
population (1,350,000 people) already gained a foothold in the city and
and industrial potential. others are reviewing possible options for
entering the local and regional market.
The arrival of major corporations
facilitates higher economic and industrial
growth. It also ensures new jobs, greater
budget contributions and a higher
employment rate. This trend will remain a
driving force for the citys development in
the next decade.
Internal trends solid foundation for the citys economic Thus, in 5-7 years time, Nizhny Novgorod
growth, including the development of should become a city of new housing
Global, domestic and regional trends are
science-intensive industry sectors. blocks and new shopping and
all interrelated. Positive national trends,
Planning the development of certain city entertainment facilities:
include Russia joining the World Trade
districts poses a problem because
Organisation (WTO), which opens up new
historically these districts have evolved One of the priorities for the next decade
international market prospects to local will be transport infrastructure
around major enterprises and growth is
companies. In addition, an improved
closely linked to such enterprises development in order to support
Russian taxation system and the
development. dynamic growth of the citys economy;
expansion of major businesses in the local
and
and regional market ensure favourable
conditions for the citys development. Implications for the city Social development also remains at the
(Social projects implemented by local and Nizhny Novgorods geographical position top of the agenda for this period.
international companies are also making and its economic and R&D potential
an important contribution to positive creates favourable conditions for further
socio-economic changes.)
socio-economic growth.
Nizhny Novgorod is the centre of the
Local municipal authorities impact on
Volgo-Vyatka economic zone and the
economic growth rates largely tends to be
capital of Povolzhye, and this high status
of indirect nature due to the division of
is another incentive for local business and
municipal government development. The responsibilities between the citys
administration aims to meet the highest administration, regional and federal
management standards and maintain the authorities and also because of funding
citys reputation as a federal district constraints. To influence the economic
capital not only on the regional, but also dynamics, the city government tends to
on the federal level. provide indirect support to transparent
businesses, such as lease extensions or
Opportunities and challenges terminations, to ensure city budget cash
The current realignment of responsibilities inflows.
and resources between the city, regional
As a result of growth in municipal
and federal governments is a further
employees remuneration, the city
positive trend. The process targets
streamlining the range of tasks and administration faces the task of efficient HR
objectives to be tackled at each level and management based on up-to-date incentive
ensuring that resources are available to and performance appraisal systems.
achieve this. Once this process is
completed, the city administration will be Priorities for the next decade
able to solve the tasks falling to it in a more
efficient manner, as it will be empowered to Nizhny Novgorod is a capital of
TransVolga Federal Region, and aims to
use the necessary resources. However,
while the process is still underway, the citys maintain this status in the next decade,
local authorities often have to take in particular, enhancing the citys role in
responsibility for certain tasks with the the regional economy and Russian
resources being controlled by either the economy as a whole; and
regional administration or the federal local
Construction objectives relate to
authorities. This sometimes hinders efficient
replacement of about 20% of the citys
solution of the issues.
obsolete housing stock over the next
The citys high intellectual and R&D five to seven years. The expansion of
potential (a great number of R&D major retail networks, including
institutes, educational centres and a international ones, to the region involves
highly-qualified population) serve as a construction of new shopping malls.
Mr Erling Lae,
Chief Commissioner of
City of Oslo
City of Oslo is the capital and Global and international trends the western world are going through a
the largest city in Norway with transformation process because this
Perhaps the greatest change that has
stage is passed. Without the industrial
approximately 500,000 citizens. taken place in City of Oslo over the recent
community, the life in cities is becoming
City of Oslo was the first city in decades is the change in the citys size
more attractive.
and diversity. Today an estimated 140,000
the world to introduce a
of City of Oslos residents are born City of Oslo has formalised international
parliamentary model of outside of Norway or one or both of their cooperation with the other Nordic
government (1986): the City parents are born in another country. Over capitals. But, according to Mr Lae,
Council elects a City half of these residents are immigrants Copenhagen has turned their eyes south,
Government (executive body) from non-western countries. City of Oslo while Stockholm and Helsinki look east.
which answers to the City is rapidly becoming a multicultural city. Mr He mentions the cooperation with
Lae expects that migration will continue to
Council, just as a national Gothenburg in Sweden a city only four
be the single most significant global trend hours' drive away from City of Oslo and
government answer to affect City of Oslo, and predicts that, with similar challenges: We have an
to a national council. We talked City of Oslo will become an even more especially close cooperation based on a
to Erling Lae, who has been the multicultural and heterogeneous city in the common interest in moving the centre of
Chief Commissioner and head next 10 years. gravity in Scandinavia north (from
of City of Oslos city The other international trend that engages
Copenhagen) and west (from Stockholm,
government since 2000. Mr Lae particularly is de-industrialisation.
Helsinki). The cooperation focuses on the
areas of transport, culture, business,
It was the growth of the industrial society
research and development, education and
that in fact created the city. Today City of
tourism.
Oslo and many other cities, especially in
Internal trends The City of Oslo is a large organisation Priorities for the next decade
with approximately 40,000 employees.
Increasing urbanisation is a trend affecting The vision for City of Oslo in the municipal
This gives both economies of scale and
City of Oslo as the biggest city in Norway, plan 2004 City of Oslo towards 2020
disadvantages. One of the main
but also as people move within the city sees the city in the future as:
challenges is to prevent the development
borders: People want to live densely and
of an excessive bureaucracy and to The environmental city, emphasising the
City of Oslo is like a magnet. We expect
secure a clear role and share of importance of maintaining City of Oslos
to have a large increase in population in
responsibility: blue green distinctiveness adjacent to
central city areas, while the growth in jobs
will be more evenly distributed. The parliamentary model of government the fjord and forest;
has positive aspects which we have to The knowledge city, underlining the
The City of Oslo is experiencing a
develop. Political responsibility is firmly competitive advantage of being one of
constant, stronger and more detailed form
placed and it counteracts any tendency to the most well educated people in
of central governmental steering through
increase bureaucracy. Our model of Europe; and
earmarked funds and regulations. The
government contributes to
citys freedom to control its own
professionalising the political leadership. The cultural city, working towards the
development is decreasing as a result of
In my opinion politicians should be aim of becoming Europes cultural
this trend.
strategic in their outlook, we should be capital in 2011, and a grand
The demographic change due to an defining goals, not maintaining individual development and building of cultural
ageing population is a trend which will interests. In a city like City of Oslo it will institutions in the city including the new
become more significant in the coming cause problems if the politicians see opera house.
decade, when the post-war baby boom themselves as ombudsmen, because it
generation starts to retire. A more contributes to pulverising the model of
multicultural City of Oslo also involves government.
social challenges, where the public
services have to be adjusted to new Consequences for the city
needs.
Urbanisation and peoples wish to live in
city centre has led to the transformation
External and internal challenges of many former industrial areas into
Mr Lae is concerned that the rest of residential zones. For City of Oslo, the
Norway may fear the growth that is term the city by the fjord is a metaphor
expected for City of Oslo. He mentions
for this transformation, where former dock
that the city council has initiated
areas are converted into living and
cooperation with surrounding
business spaces. The city government is
municipalities with the aim of achieving
growth and progress for the greater City planning the construction of 40,000 new
of Oslo area. This cooperation is focusing homes over the coming years. At the
on establishing a superior area and same time, plans are being discussed to
transport strategy for the region, move the university and research
developing cooperation on innovation and communities into the city centre.
a competitive business climate,
international marketing of the region and a During Mr. Laes period as Chief
joint exploitation of investments in social Commissioner, the City Government in
infrastructure. City of Oslo has pursued a policy where
municipal businesses have been
As a former commissioner for social outsourced to the private sector. We
services, Mr Lae is particularly concerned clearly see public-private partnerships as
about the need for a well-functioning
a possibility to force investments and to
social infrastructure. Cities have always
prepare for another pattern of payments.
attracted people who are easily excluded
But I believe its important to have a
in transparent societies, and this is only
reinforced by globalisation. pragmatic view on the use of PPP and
only use it where it gives real value-for-
money for the city, he says.
Mr Frank Edwards,
Chief Executive
Officer, City of Perth,
Australia
City of Perth
Perth is known as the Heart & Global and international trends Internal trends
Soul of Western Australia. The global boom and bust cycle of the It is very risky for a major, capital city to
Each day more than 100,000 resources sector has a major impact on be reliant on only one industry sector and
workers and visitors commute the economic stability of Perth. Any trend the industry focus of Perths business
in the sector globally and any changes in community is moving toward a broader
to the citys 1.75 million square
ownership or focus internationally or basis than resources alone.
metres of office space. domestically have real implications for
businesses in Perth. Perth is facing emerging competition from
We spoke to Mr Frank other cities in Western Australia, for
The international (and national) trend example, Joondalup, Mandurah, and
Edwards, Chief Executive
toward high, and rising, energy costs is Gosnells.
Officer (CEO) of City of Perth having an impact on business in Perth,
about the city, and Australias both in terms of increased costs for the Currently, there is a lack of cooperation
fastest growing local city and also increased demands on the between these cities and Perth. In the
government population. resources sector. future, these developing centres will need
to work together with Perth in order to
Ageing workforce issues affect Perth in effectively decentralise and diversify
the same way as they face other cities in business.
the world. The problem will deepen as the
population as a whole ages, but in Perth is experiencing a skilled worker
Western Australia it is also a cyclical shortage and competition for workforce
issue. share is intense. There are particular
shortages in engineering, financial
services, town planning and surveying.
The war for talent is a challenge for most Priorities for the next decade Perth faces a number of significant
businesses including the City of Perth environmental issues including air and
The city of Perths vision for the future is
itself. water quality. The city aims to ensure that
that: the city of Perth be widely acclaimed
the continued development of Perth meets
Environmental concerns are a as a city of regional and international the needs of today without compromising
considerable issue for Perth and the city significance. the needs of future generations
has implemented a variety of programmes economically, socially or environmentally.
focusing on environmental issues, With the fastest growing population of any
particularly in relation to water. local government area in Australia, the
main challenge for Perth is to provide a
sound basis for the expansion of
External and internal challenges corporate, retail and entertainment
The City of Perth is constantly challenged businesses in the city. At the same time
by the need for alignment between the account must be taken of the demographic
three levels of government local (or city), changes that will occur and the new
state and federal. demands they will create for the city.
The final planning authority often rests not The growing city will have increased
within the city but with the state demands for social amenities like libraries,
government. This issue is felt most keenly seniors centres and recreational facilities
in areas of large scale development, while ensuring the needs of low income
replacement of ageing public infrastructure earners and those with special needs are
and railway line sinking. taken into account. Increase in residential
living in the city means a greater emphasis
The key financial challenge facing the City
will be placed on intracity transport and city
of Perth is to maintain the income it
parking.
creates. The main income streams are
carparking, which generates approximately Perths development will be fuelled by
37% of city income and rates which economic growth in the state and new city
generate around 43%. infrastructure including the $1.5 billion
Australian dollar Metro Rail Project.
The city of Perth has strong financial
management systems in place and It is critical to the future development of
considers itself to provide best practice Perth that the city strengthens existing
standards in Australia. Compared with relationships and develops new
many local government bodies, the city of partnerships with state and federal
Perth is financially strong and has governments and the private sector in
completed substantial forward planning. order to fund and implement development
However, capital works and building and key projects.
projects in the city face industrial relations
issues and significant cost escalation. The City is well placed to attract the
growing tourist dollar, with international
tourism to Western Australia expected to
Consequences/issues for the
grow by an average of 7.3% over the next
city decade. The completion of the Perth
Perth is experiencing community demand Convention Exhibition Centre will give the
for extra services not traditionally provided city more options in the high-value
at the local government level. convention market. The city will focus on
the development of enhanced tourism
Trust and perception are also emerging amenities, including improved transport to
issues for the city as the reputation of ensure the continued attraction of the tourist
local government is rather low. The dollar.
population also tends to be apathetic
about local government and is only
interested in what its not delivering.
The City of Phoenix is one of Global and international trends The city leadership continues to develop
the fastest-growing cities in the its capabilities through Mayor/City Council
Among the most significant global and
and City Management staff
USA. Phoenix is Arizonas international trends or issues that will
communication and collaboration. This is
capitol and the sixth largest city affect the city over the next 10 years Mr
further reinforced by defining and
Fairbanks identifies:
in the United States, with communicating a consistent set of values,
almost 1.5 million residents. Long term economic stability and a philosophy, attitude and approach. A
The city has won many major dealing with the impacts of growth to further task is to look for ways that
awards, including the Carl keep Phoenix liveable; and diverse city functions can collaborate and
innovate, and create a supportive climate
Bertelsmann Prize, a Phoenix positioning itself for the future for change.
prestigious international with regards to economic development,
competition that recognises the transportation, and the environment. Phoenix has developed various
best-run city government in the programmes that address issues facing
the city. Block Watch and Graffiti Busters
world. Phoenix has been Internal trends
are some examples of the programmes
identified as a leader in local The national and local trends that will that are designed to connect people in
government management; affect the city in the next decade neighbourhoods and to increase trust
particularly for its commitment according to Mr Fairbanks include: among citizens by encouraging them to
to excellence, its focus on Water resources;
make things happen to improve their
customer satisfaction, and its communities together.
high-quality and cost-effective Public safety; and
A Block Watch Advisory Board encourages
services. Efforts by federal and state neighbourhood associations and block
governments to reduce the citys watches to network and share ideas,
funding and authority. accomplishments and concerns.
Martus Tavares,
Secretary for Economy
and Planning
of the State of So Paulo.
(Former Minister of
Planning)
City of So Paulo
Situated 760m above sea level, expected, the most Global and international trends
the city of So Paulo, in the cosmopolitan state in South
Greater community involvement; and
state of So Paulo, represents America. With the countrys
an area of approximately 1500 best infrastructure and a highly Increased demands on governments by
society.
km2, consisting of 900 km2 of skilled labour force, So Paulo
urban area and a rural area of can be called Brazils Internal trends
approximately 600 km2. So locomotive.
Accelerated urbanisation and
Paulo overwhelms the senses conurbation;
with its sheer size. With 17
million inhabitants, it is the State modernisation; and
largest city in South America. More transparency for government
actions and state accounts.
When describing So Paulo,
the superlative form is a must. External and internal challenges
It is the city with the countrys The preparation of long-term plans
encompassing the characteristics and
largest population, largest needs, not only of the municipality, but
industrial complex, highest also of the whole metropolitan region is
economic production, the one the greatest challenge for the managers of
that receives the largest the major Brazilian cities.
number of immigrants and as
Mr Bosse Sundling,
City Manager of
City of Stockholm
Stockholm County Councils Stockholm is an exciting but still a safe Global and international trends
domain covers the whole of capital. It is beautiful, clean and tidy and
Increased globel travel means the world is
well maintained. It is also a modern city
Stockholm county which has well ahead in terms of IT development (i.e.
getting smaller. Young people in
1.8 million inhabitants. The particular are increasingly mobile and
Kista). In addition, it has a wide selection
travel all over the world. As a result,
region is the hub of the of cultural activities (The Pop City 2005, a
people are developing a broader
Swedish economy. We met Mr new modern arena for major events).
understanding of different cultures.
Bosse Sundling, City Manager Environment, health, female emancipation
The cities logo and trademark is the Saint
of City of Stockholm, and Erik which aims to promote Stockholm as and technical development (ICT) issues
invited him to share with us his Northern Europes most exciting capital. have become increasingly important,
observations on the main The city government has worked hard to alongside the problem of the widening
disparity between the rich and the poor.
trends and challenges that the create a distinctive image of city with a
city faces today and in the rich cultural life, fresh air and clean water
future. (an ecologically-tenable city). Internal trends
One of the major trends affecting
Stockholm is the provision of welfare. In
about 15 to 20 years there will be fewer
people of working age than there are
today, and an increased number of people
depending on welfare. In many sparsely-
populated rural districts de-population
has had a major impact. This creates the
inevitable situation that only a few young
people are providing care for several other
elderly people. This is fast becoming a
national social problem. Volunteers could Consequences for the city It is important to find the right way to
be one solution in the future as part of an manage, eg the budget document
All these challenges mean that the city
appeal to Swedes social responsibility. should be made simpler by cutting
has to be extremely flexible. The elderly
population is decreasing, and we are down the document to half and limiting
Regional cooperation will also become a
having a baby boom. This means that we the number of commissions. We need an
major feature. Both cities and county
have unused premises for geriatric care at even more transparent budget process.
administrative provinces will become less
the same time as we have too few We have to focus on achieving target
important due to modern communications. schools. To prevent such problems in the results and not just comparing results
The county administrative provinces will future, we must plan carefully and take with previous years;
disappear and will be replaced by another into consideration different alternatives. In
structure. this case, we could use the same geriatric The city has earmarked a sum of money
care premises for preschool and school (SEK 2 billion over 4 years) for the
Quality is an important issue. Public
activities. general improvement of the council
sector institutions must guarantee a high
staffs qualifications in a special
standard of service. One way of doing this At the same time, we must be careful in
foundation course in competence
is by introducing IT solutions to help new managing transport and logistical issues
(Kompetensfonden). We strive to be a
businesses. For example, domestic help to prevent environmental problems. The
good employer, offering great
may be equipped with handheld city council should be organised in such a
way so that it is quick to respond to opportunities for all employees to
computers so that they can visit different
challenges and can provide a high quality develop. Also trainee programmes are
clients without having to return to their
of life for its subjects. We should not shut available. In this area, there are 195
base in between. They can also forward
ourselves off from the public. Instead, we different projects aimed at creating
reports and get information via their
must be sensitive to the changes around those opportunities; and
computers. This has resulted in increased us as well as in the world and work
efficiency savings. towards creating a city with functional
Recruitment is a very important issue.
We will need about 20 per cent more
intelligence, able to cope with any modern
External and internal challenges personnel within the schools and the
challenge.
social care services during the next ten
The city of Stockholm needs to
years. Ideally, the competence
accommodate two different views: one Priorities for the next decade
driven towards progress and another foundation course will make this easier.
Areas that we are focusing on in the short
driven towards maintenance of the
term include:
existing status quo. There is underlying
conservatism, as summed up by the Labour market/integration/emancipation
common saying things are as they are. are some of our overall tasks;
Many people are disinclined to change
their way of thinking on many issues, e.g.
The economy the priority here is to
keep it in balance. It is important to
that geriatric care will invariably cost
something even for the individual. The improve employment and to allay
conflict between this conservatism and popular frustration. Another key issue is
more progressive views, which is the how to employ immigrant labour
natural product of a vibrant community, effectively;
has caused a degree of social tension.
The city has to find new ways of
At the same time, there is the problem of political promotion. We have to
the generation born in the 1940s leaving approach the citizens directly and the
the labour market. political parties have to sharpen up and
change radically. The political system
must be made a concern for everyone;
Clover Moore,
Lord Mayor,
City of Sydney
City of Sydney
Sydney is Australias largest Global and international trends Changing population patterns affect
and most densely populated Sydney and the international trend of
International trends have a growing
migration from rural and suburban areas
city. Built around a beautiful influence on the increasingly globalised
into cities is clearly reflected in Sydneys
natural harbour, it is bursting community of Sydney. There are other
expansion, particularly in the inner city.
cities in which to do business, but people
with life, energy and colour.
from all over the world are attracted to Sydney, like other cities, is looking for
We spoke with Sydneys Lord living as well as working in Sydney, the solutions to issues associated with an
Mayor, Clover Moore, about its Lord Mayor said. ageing population and changing
unique mix of history and her population demographics.
Business visitors and tourists are crucial
vision for the future.
elements of Sydneys economic life and
the city focus is on maintaining growth in Internal trends
numbers as well as attracting a diverse The number of workers, residents and
mix of international and regional visitors. visitors to the central business district of
Sydney rose dramatically through the
The City of Sydney seeks to achieve
1990s. The growth continues today and
commercial sustainability by creating a
has increased demands on public
liveable, vibrant city that is globally
transport and changed the car, bus, rail
competitive while maintaining its regional
mix. There is also a growing demand for
flavour. It also aims to foster a strong sense
pedestrian and bicycle access to and
of community and belonging alongside the
from the city.
expansion of international businesses.
There is a marked escalation in the In order for the city of Sydney to achieve Priorities for the next decade
number of residents of central Sydney, its vision for Sydneys future it must work
The Lord Mayors vision for Sydney is a city
most notably an increase in families with other councils in Sydney as well as
that is prosperous, vibrant and liveable.
settling in the inner city. state and federal governments. This is
of particular importance to issues like The city aims to create a tolerant and
In order to cater to this increasingly Sydney International Airport, Sydney diverse city with compassionate solutions
urbanised population and to attract new Harbour and major developments on to complex inner city problems.
residents, The City of Sydney publicly owned land.
is encouraging more childcare places and The priorities for the next decade are:
educational services, creating improved
leisure and community facilities and
Issues and consequences Leadership and participation;
adopting a more strategic approach to the The increasingly global nature of the city Quality urban environments with
citys public domain. means inhabitants of Sydney are exposed consistent planning controls;
to a more expansive lifestyle than in other Economic growth and development
The Lord Mayor explained that the City of
cities of Australia. The city is responding
Sydney tailors its policies toward a City Environmental leadership;
to this with innovative public facilities
of Villages to include the diverse needs of Community and social equity;
including signature aquatic centres,
its constituency.
refurbished hotels and shopping centres Accessible, integrated and affordable
and more accessible harbour foreshore transport; and
Internal and external challenges
recreational areas. An improved public domain including
Balancing the needs of residential and
parks, foreshores and leisure facilities.
business development in the city and The city of Sydneys boundaries have
creating the right mix of retail, The Lord Mayor believes it is a golden
grown over the last few years to
recreational, entertainment and tourist age for the city, Sydney has political and
incorporate areas surrounding the central
facilities is an ongoing challenge for the economic stability combined with vision,
business district. The city is now able to
City of Sydney. In providing for energy and commitment to the future.
provide increased services to a larger and
sustainable growth, a balance must be
more diverse population and is in the
struck between economic, social, cultural
process of creating strategic planning
and environmental dimensions.
goals for the enlarged city.
The appropriate mix of integrated
Overhauling planning instruments and
transport options across the city is critical,
as is transportation in and out of the city creating a unified city plan is a key goal of
itself. The city is also conscious of the the city and will provide more certainty to
need to preserve and enhance the distinct the community as well as more strategic
character of Sydney and protect the value decision making and transparency of
of the citys rich natural, cultural and government.
urban heritage.
The City is conscious of the need to
A tri-tiered system of government strategically manage growth, particularly in
operates in Australia, consisting of the key areas like the city to airport corridor and
local tier (City Council), a state to ensure that development is
government and the Commonwealth environmentally as well as economically
(Federal) government. This system means sustainable.
the city is not responsible for matters like
public transport, but acts as champion for
the interests of the central business
district and its surrounds.
Sydney Harbour
Sydney is the capital of New Global and international trends the proportion of people aged over 65
South Wales (NSW) and a living in Sydney will increase from the
Growth in the South-East Asian
current 1 in 8 to 1 in 3.
thriving international city of economies has created clear
more than four million opportunities for Sydney as a leading city Environmental issues like global
in the Asia-Pacific region. Sydney has
inhabitants. warming, engage the city, as the
become both an international and an community seeks alternatives to
internationalised city. We dont think of traditional energy sources. Increasing oil
We spoke with The Hon. Bob ourselves as competing with other cities prices and the impact of rising costs for
Carr, the Former Premier of in Australia, but with cities like Singapore. trade are practical concerns for Sydney,
New South Wales about the Shanghai, San Francisco and Vancouver as is the threat of terrorism says Mr Carr.
city today and the Sydney of says Ex-Premier Bob Carr.
tomorrow. International migration and the global Internal trends
forces which impact population Sydney is justifiably proud of its robust
movements are key influences of economy. It is a regional centre for
Sydneys growth strategies and the citys international business, the highest value
evolving demographics. International generating city in Australia and has an
immigration numbers are set federally, but unemployment rate below that of the
Sydney continues to attract the best and national average.
to benefit from immigrants business and
linguistic skills. Our cultural diversity is a Maintaining our economic competitiveness
great asset, says Mr Carr. Immigration is is critical. Our advantage is the relatively low
also a possible solution to the cost of business real estate and our skilled
international issue of the ageing personnel give us a great advantage in the
population. By 2031, it is projected that region, says Bob Carr.
The management of future urban growth A cooperative working relationship The NSW Government is committed to
which anticipates demographic changes between the state government and the ensuring that Sydney continues as the
while maintaining the valuable landscapes Commonwealth government is seen as most robust economy in Australia. It will
will be a challenge for Sydney. Long term crucial if NSW is to realise its vision for focus on manufacturing, transport,
projections suggest the population of Sydney. For example, despite NSWs storage and distribution activities which
commitment to reducing greenhouse are located in industrial areas in Western
Greater Sydney could grow from 4.1 million
gases, it is restricted by the refusal of the Sydney, partly due to the expansion of the
to 5 million by 2031. The population trend
Commonwealth Government to sign the motorway networks.
requires Sydney to consider how best to
Kyoto Protocol. On the positive side, there
distribute jobs to the western suburbs, are many projects on which the
address housing needs and create a governments work cooperatively including
balance between road and public transport. high-profile international conferences.
Toronto
Interview Mr David Miller,
Mayor, City of Toronto
Internal trends Current governance arrangements within Priorities for the next decade
Canada represent a challenge to all cities
One major challenge is democratic There is no doubt that economic trends
in Canada. There is a clear mismatch
renewal in large-scale municipal are reinforcing societal changes and that
between local government accountability
organisations, since people look to the as national boundaries become less
and the expectations of community
city council to solve problems and help critical for major jurisdictions around the
residents for a responsive government
deal with issues that affect their lives and globe, cities will become more significant.
looking after their interests. This challenge
their neighbourhoods in a meaningful and
is exacerbated by the fiscal imbalance The 21st Century belongs to the cities of
direct way. Toronto continues to enjoy a
between local government responsibility the world. We can see in Canada that
rich diversity of cultural neighbourhoods.
for front line social programmes and the over the past 100 years we have moved
The truly amasing thing is that these
fiscal resources and fiscal capacity to from a rural agrarian economy to a
disparate cultures mix together in ways
address those responsibilities. People of dynamic global reach economy based, in
you simply cannot find anywhere else in
the City of Toronto know that the buck our case, on financial services,
the world. Each cultural district is made
stops here and so the challenge is to communications, information technology,
up of a mix of people from different
make sure that the fiscal buck stops here media production and manufacturing and
cultures, speaking different languages.
to meet that responsibility. assembly operations with world mandates
Language, culture and colour are symbols
of pride in our multicultural city. for products and services. These
Toronto has a history of welcoming the
economic activities are based
world to join this global village. The
This trend to greater diversity seems set predominantly in cities. Our experience
challenge is to build on that tradition and
to continue for the foreseeable future. has shown that our nations economic
to let it renew and energise the Toronto of
health is critically dependent on its cities.
tomorrow.
External and internal challenges For example during the SARS outbreak
two years ago, when Toronto got sick, the
Major challenges facing the City of Consequences for the city whole country caught a cold. It is
Toronto include environmental issues such
These challenges mean that we are the estimated that the national economic
as water quality of the Great Lakes. As a
government of choice for the people of growth in Canada was reduced by more
waterfront city Toronto has a clear interest
this city. They look to us to make a real than 1 per cent as a result.
in ensuring the quality and accessibility of
difference in their neighbourhoods and
its drinking water supply. Great Lakes Toronto is a city that benefits from a vital
their lives. They look to us to actually
water quality is a continental issue and civic engagement of people from all walks
solve problems, to make Toronto a better
Toronto will play a role that extends of life, new and old Canadians and that is
place in which to live, work and raise a
beyond its geographic boundaries. what is making Toronto a great city. We
family, and they want to be engaged in
want to share that best practice with other
Toronto continues to do what it can to that process. This is our commitment and
cities around the world.
protect and preserve a clean environment it means that we must re-engage the
but ultimately these issues can only be residents of Toronto with their city. The We want to learn from others as well. For
successfully addressed in concert with people of Toronto are optimistic, full of example, Porto Alegre is the leader in
our local, provincial, national and energy and ready to do what it takes to participatory budgeting. Toronto has
continental neighbours; an immensely make their city thrive. Over the past year achieved one of the highest standards of
challenging situation in which the people we have held two Listening to Toronto engaging its residents in its processes.
of the City of Toronto expect their sessions. More than two thousand people
government to be active players. participated in helping set the citys
priorities. That is an astonishing number
Public transit operations and of people to come out on their own time
infrastructure are the first answers on on Saturday and Sunday afternoons and
most individuals minds when the issue of this shows that people really want to be a
what to do to improve air quality and part of municipal government. This is our
transportation arises. Yet, frustratingly tradition and it is our strength in Toronto
there is not a full recognition of the critical people really welcome participation and
role that public transit plays at the local, actively and respectively engage in the
regional and even national level. Public process.
transit is delivered locally and local
governments need the resource base to
deliver in that role.
The administrative capital of The nicest time to visit is Global and international trends
South Africa, Pretoria/Tshwane spring, when in October more Globalisation has resulted in ever
lies about 50 km north of than 70,000 Jacaranda trees increasing competition for investment,
Johannesburg with a are in full bloom. Then the which is no longer limited to national
boundaries. The major environmental
population of over 2.2 million. whole town is one big purple-
challenges facing the planet has seen
It is quite easy for the visitor to coloured and sweet-smelling environmental protection groups gaining
find his or her way through the sea of blossoms. The exotic prominence, and in the process the
city, which is laid out like a trees were imported from South capability to exert ever-increasing
chess board. Pretoria lies America some 100 years ago pressure on cities.
1367m above sea level and is and gave the town its A global world also means that the world
surrounded by protecting nickname: "Jacaranda City." eco-nomic growth rate has the potential
mountains. The climate is to limit or boost local GDP.
subtropical with hot, wet
summers and relatively mild, Internal trends
dry winters In line with the rest of the country,
increased unemployment, urbanisation
and HIV and Aids pose significant
challenges to the city, as do crime and
transportation. The City of Tshwane
Metropolitan Municipality (CTMM) is also
seeing an influx of people from
neighbouring coun-tries, often illegally.
Coupled to the social challenges, a lack of In order to address these challenges, the Openness and transparency is some of
suf-ficient financial resources to maintain city has developed a City Development the values and attributes of the CTMM
existing infrastructure and eradicate Strategy as an instrument of intervention. and this will require a citizen engagement
service delivery backlogs, hampers With a 20 year vision driven by the process that is credible.
development. National restructuring Muncipal Manager, it provides a
initiatives, among them the establishment framework for economic growth, making Citizens can only understand the
of Regional Electricity Distributors (REDs), the city sustainable and equitable through challenges the city face if they are
may eventually have an impact on the pro-poor policies, strategies and action. In informed and it is also of importance to
cities income. addition to this strategy, a long-term obtain the needs and priorities for service
financial strategy has been developed as delivery from citizens as these will direct
Human resource development and a financial plan to achieve the desired the strategies that the municipality
capacity building remains a significant outcome. developed.
challenge.
The vision of the city is to be the leading Successful cities do not simply happen,
Afri-can capital city of excellence, one they are the result of deliberate actions.
External and internal challenges Creating successful cities requires careful
that empowers the community to prosper
Ever increasing governance complexity planning and integrated efforts in key
in a safe and healthy environment. The
and legislative changes exert significant areas that are identified with all
vision was develo-ped through an
pressure on the citys resources. Low stakeholders, and takes into account the
interactive process that involved the local
levels of payment for services by needs of the people and economy. To
politicians and the senior mana-gement of
consumers continue to strain the citys achieve all of this requires a well
the municipality and was communicated
financial resources. developed intergrated development plan
to all stakeholders through community
meetings. that will ensure that the needs of the
The city does benefit from a stable political
communities are attended to.
and workforce environment and must find
ways to leverage the opportunity to develop Promotion of the city and
CTMM into the intellectual capital of Africa.
priorities for the next decade
The foundations are there: the city hosts
The city has developed a marketing
some of the largest and most important
strategy that focuses on the various
universities on the continent and is home to
segments in the market. The city is
most of the research institutions in South
promoted through various publications,
Africa. The City is also host to all Embassies
events, Mayoral events and cam-paigns,
and foreign missions in South Africa.
attendance of international and natio-nal
Lack of financial, human resource and tourism events. The brand for the city is:
skills capacity is the single largest A City at work and a City on track. The
challenge facing the city and threatening brand of the city was an initiative by the
its sustainability. Executive Mayor of the CTMM.
On the positive side the city possesses a It is a legislative requirement that the
sta-ble institutional framework (albeit not municipality must make public the annual
the most optimal one), a currently sound budget and invite communities to submit
financial position and a well defined vision representations, which the Mayor must
and city strategy. respond to. The CTMM has developed a
public participation process through a
Consequences for the city ward committee system where
communities have the opportunity to
Failure to respond to the challenges will
interact with the municipality. The
inevi-tably threaten the financial viability of
Executive Mayor also on a regular basis
the city, resulting in increased service
held IMBIZOS com-munity meetings to
costs. This will deter investors and
listen to members of the community. The
influence local economic growth
interaction with communities is going to
negatively. Eventually the city will be
be a critical aspect for the CTMM in the
unable to provide all citizens with access
next 10 years as the buy-in into the city
to services, which has serious social and
development strategy will be required for
political consequences.
the success thereof.
His Worship,
Larry Campbell,
Mayor, City of Vancouver
Vancouver is experiencing an economic External and internal challenges Vancouver plays a special role in British
boom provided by the international Columbia and Canada and the senior
Vancouver is a great city, but if we are not
focus of the 2010 Winter Olympic levels of government are beginning to
careful we could lose everything we have
games. We will all be challenged to understand that special role. Our Prime
that contributes to our unique quality of
welcome the world while maintaining all Minister maintains relationships directly
life here in the city. In particular, we need
that is special about our city. with the mayors of major cities.
to solve our transit issues and reduce
green house gas emissions to protect the Concrete changes to powers and
Internal trends environment. resources are needed to enable
Major internal challenges facing the city of Vancouver to fulfill its role and vision that
Increased population density brings
Vancouver include: has been created with the broadest of
change: fewer private gardens, less green
Sustainable development. We must have public participation.
space, and other changes (some less
a mix of all strata of income levels in our desirable). Vancouverites dont all see this
city. This may mean subsidies in some as a big city because it does not feel Consequences for the city
cases, for example housing. We need to like one when you live here. Frankly, I These challenges mean that Vancouver
increase the variety and affordability of believe that is what many people love must:
housing in the city of Vancouver; about this great city of Vancouver. World
travel, and my 20 years as a coroner, Recognise that the 2010 Winter
Greater population density beyond the Olympics are having a big impact on
downtown core the present trend and gives me a somewhat different
perspective. Vancouver is a global city, Vancouver bigger than perhaps many
model of single homes on large lots is
make no mistake about it. thought. People all over are talking and
not sustainable;
wanting to come here to see what it is
Transit issues both in the city and the Our regional governance structure needs all about. They are having a huge
region are growing each day. This improvement if it is to serve the needs of
impact on bringing recognition to
issue is one that confronts individuals the people of the Greater Vancouver
Vancouver;
almost everyday and so it is a priority to Region. It might work better to look at the
be addressed; regions north of the Fraser River and Continue to take a leadership role within
south separately. the region, particularly when dealing
Retention, and growth of our industrial with transit issues, environmental issues
land base, especially the Port of The ideology in our regional municipalities and governance issues to ensure that
Vancouver, is an issue that must also be must change. All the infrastructure and
the unique characteristics that make our
addressed. After all, historically that is services one sees in the dense downtown
city and its surrounding region so
why Vancouver came to exist; core cannot be supported by single family
liveable are preserved, protected and
Environmental responsibility homes on quarter acre lots.
enriched;
(stewardship), especially in greenhouse It seems that cities can talk together more
gas emissions. We need to improve the Continue to ensure that the city respects
easily than many nations. On my recent and strengthens its neighbourhoods, the
environment while at the same time visit to Beijing we spoke about pollution,
diversifying our parks and public places; basic building blocks of any great city
the Olympics Games, other ideas of
around the world;
Proper transportation is critical, both for common interest to our two global cities.
the city and region. This means putting As mayors we are able to freely share Strengthen Vancouvers role in
public transit ahead of cars. Vancouver ideas and offer assistance at the city level economic development, especially
must take a leadership position in the around the globe; and we do. given its position as Canadas Jewel
region and the nation. We simply have City of the Pacific Rim; and
I believe that cities have moved beyond
to reduce reliance on the automobile in
traditional boundaries into economic By no means last, welcome visitors and
the city and Greater Vancouver Region;
policy and governance issues that affect new residents from around the world
We need to strengthen our their nations and the world. with open arms and warm hearts to
neighbourhood centres, improve make sure they feel that special
community safety and better target our For example, I belong to a group called Vancouver welcome from the first
community services; and Mayors for Peace. As the organisations
moment they set foot on our soil. Our
name suggests, mayors of global cities
We must make sure that we involve the people are, after all, our greatest source
are tackling issues that are beyond the
people of Vancouver in the process of of strength, vitality and prosperity for
traditional range of city issues. We are
redirecting resources as we set our uniquely positioned to bring influence to the future.
priorities together. global issues; and so we do.
Centre for Fostering the Knowledge City that Strengthens the Independent
Economy: to foster the creation of Solidarity of All; and
companies in the sectors closest to the Benchmark City for New Urban
knowledge economy and to provide Governance.
opportunities to all in order to access
information and knowledge
technologies; and
Mr Josef Kramhller,
Chief Financial Clerk
of Vienna
City of Vienna
Vienna is not only the largest He pointed out that the city is Global and international trends
city in Austria but also its strictly regulated by central European enlargement in 2004 had, and
capital with about 1.7 million government - with strict fiscal still has, a significant impact on Vienna.
inhabitants. Due to its rules and a strong focus on the As a result of its geographical location
and historical background, the city is a
geographical location in the cost structure of ther city
melting pot of citizens from new and old
eastern part of the country and administration and services. member states, who increasingly
its historical development commute across borders. Due to different
(Austro-Hungarian Monarchy), However, the key issue for the cost levels between Austria and the new
the city is seen as the gateway city administration is to ensure member states, outsourcing and
to Central and Eastern Europe that the basic needs of every relocation will increasingly take place. This
is especially likely with the migration of
(CEE). citizen will be satisfied in all
multinational enterprises to cheaper
areas and domains. Eastern European locations and is a key
We talked to Mr Josef issue for Vienna. Other trends are the
Kramhller, Chief Financial ageing population and weakening family
Clerk of Vienna, and ties, which result in a growing municipal
interviewed him about the budget for social help and welfare as the
need for more residential homes for
future challenges and the
elderly and nursing homes rises.
consequences for his city.
Internal trends The related risks are a possible downturn Priorities for the next decade
in the housing market and affordability.
For Vienna, it is increasingly necessary to The following are major priorities and
Viennas strength is its sound financial
maintain or even expand the public visions for Vienna for the next decade,
base, especially compared to other
transport network as more and more which were developed in the city
federal states. (Note: Vienna is not only
citizens of Vienna will not be able to afford development plan and finalised in detail
the capital of Austria but also represents
by experts in the administration according
their own car and the proportion of elderly an individual federal state).
to politically predetermined requirements:
people in the population is growing. Thus,
about EUR 3.6B is being spent on the 4th As the predominant urban centre in Austria,
Vienna will become an example of
expansion stage of the subway to develop Vienna attracts many immigrants from
environmental protection within its
national and inter-national territories, many
peripheral areas. financial possibilities (e.g. construction
of whom are financially dependent on the
of a third incineration plant);
Furthermore, the educational level of the state, causing increased pressures on the
Viennese population is very high, resulting cities finances and services. Furthermore, Vienna stands for a balance between
in an excess supply of highly-qualified the responsibility for the construction and affordability and high standards
maintenance of federal roads was regarding housing stock (e.g. the
labour.
transferred from the federal authorities to avoidance of slums and ghettos; a
New practices in public management, e.g. each federal state. Consequently, the social mix on the one hand but
the introduction of flatter management respective roads have to be financed by the attracting socially stable and financially
structures are aimed at improving the city of Vienna as the federal authorities will sound inhabitants);
performance and efficiency of the municipal not pay beyond 2008.
Vienna city council aims to create and
administration. However, a key issue
maintain employment (e.g. establishing
regarding personnel policy in administration Meeting the challenges
a foundation, which encourages the
in Austria is the legally limitations on The city of Vienna is intensifying its efforts settlement of high-tech enterprises);
reducing staff numbers. Many organisations to motivate its citizens to engage in
have are over-staffed, which of course municipal issues. These efforts include Vienna will achieve a permanently
means inflated costs. Due to the social placing a post-box for complaints in the balanced administrative budget (e.g.
function of local authorities, rationalisation city hall, special complaint-oriented engaging in Public Private Partnerships
departments, special services for citizens only if the realisation of the project is
goals are sometimes not pursued as
and increasingly citizen-friendly impossible otherwise); and
stringently as in the private sector.
administrative processes. Furthermore, the
municipal administration will become more Vienna is to outsource tasks only when
External and internal challenges decentralised. In general, the population economically positive effects will be
The two major challenges for the city are regards Vienna as a city with a well-working achieved.
to maintain the current high educational and functioning administration.
standards and to attract international
enterprises to keep their production sites Consequences for the city
in Vienna. In this context, public
In regular negotiations with the federal
procurement law in Austria is regarded as
authorities the city often has a relatively
conservative, with strict interpretations.
weak position. The Austrian Financial
Furthermore, ongoing outsourcing creates
Constitution Act assigned significant
a more liberal entrance to the market as
competencies to the federal authorities,
seen with the outsourcing of museums
which, for instance, are now allowed to
and the Stadtwerke Holding AG
demand 35% cost contribution when
(municipal utilities).
international organisations are settled in
We see major opportunities for Vienna Vienna. Regarding education, the
include: implementation of the legally required
developing its housing stock; minimum number of pupils per class,
would lead to laying off significant
playing a key role as an administrative numbers of teachers, thus contradicting
centre for companies active in CEE the citys intentions and visions.
countries; and
City of Warsaw
Warsaw, the capital of Poland We talked to Slawomir Skrzypek, Global and international trends
and its largest city, is located the Deputy Mayor of Warsaw The event that has and will have the
on both sides of Vistula river, about the future challenges and greatest impact on Warsaw is the
approximately 350 kilometres their consequences on the city. enlargement of the European Union.
Polands accession to the EU in May 2004
from both the Carpathian His motto for the coming years
not only made Warsaw face new
mountains and the Baltic Sea. is making Warsaw not only an challenges but has also created
Its population is estimated at open and friendly city but also a unprecedented opportunities for the city.
almost 1.7 million with an urban city that is comfortable and full For Warsaw a city chaotically rebuilt
agglomeration of approximately of prospects, and one that from ruins the financial possibilities
2.4 million people. The city, people want to live and work in. offered by aid funds are enormous.
Furthermore, the use of European aid
also the capital of Masovian
funds offers a major chance to resolve
Voivodship, is home to many many infrastructural and transport
industries (manufacturing, steel, problems, and Warsaw has already
electrical engineering, embarked on some of these initiatives.
automotive), and comprises 73
Our long-term aim is to increase Warsaws
higher education institutions role in Europe. The capital city of Poland
and over 30 theatres. should be one of the ten most important
European cities, but to achieve this will be
a long and difficult process. Currently, we
compete with local centres, i.e. Prague
and Budapest.
We are also carefully observing what is using its services may in future lead to External and internal challenges
going on to the east of Poland. All the many problems, the first and foremost
former USSR Republics represent an being financial problems, as nearly 30%
consequences for the city
enormous market for Poland and the of personal income taxes are consumed The major external challenges of the city
European Union. The city of Warsaw sees by the budget. Thus, there is a significant concern the construction of the road and
its future role as a bridge between the EU difference between the number of people highway system (realised by the General
and Eastern Europe, as a gateway for actually using the citys infrastructure and Directorate for State Roads and
operations in the east, including the the number of taxpayers financing it. Highways), including the Warsaw ring
Ukraine. road.
Additionally, the equalising subsidy has
Furthermore, global events are developing a large impact on the capital citys The major internal challenges are
in such a way that it seems necessary to budget. Due to high taxes, Warsaw pays addressing the land ownership issues in
consider strengthening the security an enormous contribution to the state Warsaw and using the well-developed
measures in the city. This relates primarily budget for the development of the poorer train communication network in the city.
to preparing the citizens of Warsaw for regions, amounting to roughly, PLN 470
A SWOT analysis is the next step after
crisis situations which are related to million per annum. This type of Robin
preparing the Report on the State of the
global terrorism. Hood contribution significantly reduces
City in developing the Strategy for the
the citys investment capabilities.
Development of Warsaw until 2020.
Internal trends The population structure by level of
Demographic processes will probably education has a significant impact on the Priorities for the next decade
have the largest impact on the future citys future character as well. The share The city of Warsaw is in the process of
development of Warsaw. In Warsaw we of people with a university-level education preparing a development strategy. The
can already see the processes typical for in Warsaw is the highest in Poland (24%); document will comprise the period up to
large cities taking place, e.g. de- it is also rather high compared to other year 2020.
urbanisation. The most recent Central European cities. Therefore we are
Statistical Office forecast to the year 2030 counting on the local population to enable Five strategic goals have been set:
states that the number of people living Warsaw to draw investors looking for
within the boundaries of Warsaw will Improving quality of life and security of
highly qualified staff.
decrease. At the same time, there is Warsaw citizens;
increased migration to Warsaw of people The comparatively good situation in the
Strengthening the citizens sense of
seeking to make a new life. Currently, Warsaw labour market is deepening the
identity by cultivation of tradition,
Warsaw is a city where it is relatively easy already huge differences in the standard
culture development and stimulation of
to find a job, therefore people from all of living in the Mazovian Voivodship.
social activity;
over the country are trying to make the Warsaw and its direct vicinities are
most of the situation and move in. On the developing more and more intensely, Development of metropolitan functions
basis of the census, the Department of becoming more affluent, while the reinforcing Warsaws position at the
the Chief Architect of the City tried to boundaries of the province are regional, national and European level;
calculate how many people live in increasingly feeling the backwash effect
Warsaw. It transpired that there was a that washes the development resources Development of modern economy
significant number of people working in from the region into the city. based on knowledge and scientific
the black economy. At the same time, research; and
On the positive side, changes in financing
other research shows that every day over
the city investments as a result of Establishing sustainable spatial order in
half a million people come into Warsaw,
European accession are providing a boost Warsaw.
including 300,000 who come in to work.
to the city. The city is counting on the
This shows that there are certainly more When discussing the vision for Warsaw
absorption of EU funds to accelerate local
than 2 million people in Warsaw. today, we see a future financial centre in
development and to enable several
our part of Europe, a city with hi-tech
The decrease in population connected investments to be completed which could
industry, attractive to investors and
with de-urbanisation, together with a not otherwise be realised or would have
citizens.
simultaneous increase in the number of to be suspended.
people coming into Warsaw or temporarily
Hiroshi Nakada,
Mayor, City of
Yokohama, Japan
Yokohama is the largest city in Global and international trends Yokohama participates in the City Net,
Japan with approximately 3.5 which is an inter-city cooperation network
One of the most significant international
in the Asia-Pacific area.
million citizens. With a unique trends to affect Yokohama over the next
historical background, the city 10 years is the increasing focus on
compatibility between environmental Internal trends
has been known as the
issues and economic activity. This issue is Recent reform by the Koizumi cabinet has
gateway to foreign countries important not only on a global scale but is impacted on the relationship between the
since Japan opened up 150 equally significant for local government central and local governments, and
years ago after a long period of units. promoted decentralisation of power and
operating a closed-door policy. devolution-related issues. This movement
On a global basis, developing countries
will strengthen the principle of the
should not rely on old methodologies that
Yokohama today is full of complementary nature of the relationship
may have worked in the past working for
between governments, where the central
enterprising minds eager to the now developed countries. Instead,
government only deals with issues
take advantage of the citys developing and developed countries
beyond the ability of the local
unique position in the its should collaborate to form a sustainable
governments.
society, helping each other to solve
ambitions for the future.
environmental problems and to achieve In addition, Yokohama needs to find a
further development of the global new sense of value that is not simply the
We talked to Hiroshi Nakada, economy. wealth brought by economic
the young and enthusiastic development. Rather the city should
mayor of the city of Yokohama, Yokohama is similar to other major cities
pursue harmonisation and balance of
abroad such as Los Angeles, San Diego,
and interviewed him about the Lyon and Shanghai in some ways. By
economy and environment.
future challenges that the city concluding agreements with these cities,
will face and their expected Yokohama has exchanged information
impact. with, and learned from them. Additionally,
External and internal challenges A shift from the centralised administration Priorities for the next decade
to the decentralised one by the
The major external challenges that the city Yokohama has a clear vision for the next
empowerment of lower officials is urgently
faces when addressing the trends ten years. It aims to transform itself into:
needed to provide quick solutions to the
mentioned above largely stem from the
citizens immediate problems and A Life-Enhanced City by supporting
fact that an overwhelmingly large number
challenges (with ultimate responsibility the activities, creativity and ingenuity of
of people maintain the traditional idea that
remaining at the top). Decentralisation individuals, NPOs and private companies
economic development makes citizens
should be pursued on the basis that both so that citizens can live a fulfilling life;
happy. There is therefore real difficulty in
the top and lower levels share a common
persuading people to accept that
sense of values and goals. An Environmental City by taking
economic development does not equate
necessary actions to reduce the use of
to happiness, because Yokohama has Concern over safety in the city is also materials and encouraging citizens to
achieved such development. increasing. For the first time in 2003, the re-use and to recycle to protect the
citys anti-crime program became the environment for future generations; and
The biggest internal challenge relates to
citizens top priority as indicated in the
the scale of the city authority. The
Yokohama Annual Citizens Survey. A Unique City a developed city
organisation employs 33,000 staff- the
Citizens voluntarily organise anti-crime where both people and information
largest in Japan. Because of its size
patrols in various areas of the city. move freely, and yet each area of the
administrative reform will be difficult.
city retains and takes pride in its unique
Regarding environmental issues,
It is also important that local government characteristics.
Yokohama is promoting various programs
engages in full disclosure. As the
such as the Yokohama G30 campaign This vision is outlined in the
administration gains credibility, citizens
throughout the city, which encourages administrations mid-term policy plan. In
will actively take part in constructive
citizens to reduce their garbage by 30%. particular, we are working to make
discussions with the government.
Yokohama the city in which individuals
Yokohamas officials are going to manage
Impact on the city can reach their full potential.
the city in collaboration with citizens
under a new initiative new public As long as developed countries around
rather than rely on existing methods to the world fail to understand that economic
provide public services in response to development does not equate to
diversified needs. They recognise their
happiness, no real change can be
social responsibility for policy-making and
achieved. And as hard as Yokohama
the reasons for the very existence of the
might try to make progress in this area, it
administration.
is very difficult to achieve much alone.
So far, the private and public sectors have
been clearly distinguished. However, once After taking into consideration the
private entities start participating in the environmental issues, Yokohama aims to
new public initiative, they too will need to create better conditions for companies
recognise their accountability and social economic activities than other cities.
responsibilities as a matter of course. However, there is a concern that this could
result in intense competition to attract
A leaders role is to raise issues, make
enterprises unless the concept that
and put into practice decisions, and to
economic development does not equate
take final responsibility. This is not a new
to happiness is shared nationwide.
idea, but has yet to be fully realised in the
political and administrative scene in One of Yokohamas roles is to send out
Japan. It is hoped that this problem will that message.
be solved in the near future.
City of Zaragoza
Zaragoza is the capital of the Global and international trends Internal trends
regional government of Aragn. One global trend that could impact most The modernisation of management is one
It has a population of 640,000 significantly on the city of Zaragoza in the of the internal trends that will have the
inhabitants, approximately 50% next 10 years is sustainability (of the largest effect on Zaragoza. There is a
urban model and its services) both in growing demand by the citizens (and
of the entire population of the
economic and environmental terms. understandably so) for proper
region. It is an industrial city, management of the citys assets by its
with strong professional, This pressure will intensify due to changes municipal government and for
tourism and cultural roots. to the concept of jurisdiction. In the 19th effectiveness and efficiency in the citys
century jurisdiction was an issue argued financing systems. Given the citys
by nation states. In the 21st century, increasing and varied needs, more work
We spoke with Juan Alberto however, jurisdiction has become an issue needs to be done in these areas.
Belloch, the mayor of disputed by cities. This has led to an
Zaragoza, about the future increase in the vulnerability of cities, Another major trend that will affect
challenges facing Zaragoza and which makes it important for them to have Zaragoza is the increased representation
how they will be met. a clear growth strategy. of the large Spanish cities at the state
level, relating to the power of the state,
In Zaragozas case, the management of its especially in issues such as tax.
From an economic point of cultural diversity, the collaboration
view, the size of a state is between the public and private sectors,
unimportant in a globalised participatory budgets and the shifting of
world. What is key is having power from the state to the city will be
key matters to address. At the same time,
very open cities with excellent we should not ignore the issues of
communications in which security or natural resources such as
anyone can do business water (which will form the basis of
Juan Alberto Belloch. Zaragozas image at the 2008 Worlds
Fair).
Mr Elmar Ledergerber,
President of the City of
Zurich,
Internal trends Consequences for the city Priorities for the next decade
An important internal trend is The City of Zurich should be committed to The priorities for the city over the next ten
urbanisation. Zurich, like other big cities, the principle of sustainability. This years include in particular:
has a suction effect which will continue commitment means that economic,
New Public Management;
despite the fact that the city has partially environmental and social concerns are all
joined together with other regions in equally taken into account. Zurichs IPSAS: There is an impetus towards a
Switzerland. The city aims for generational strength as a business location, and generally recognised quality standard for
equality, growth and restructuring to the particularly as a financial centre, should accounting for the public sector. In
benefit of the middle class. Zurichs continue to be developed. In the area of particular, planned changes will result in
population is the only one growing in IT and IT-associated companies, there are greater reliability and transparency in the
Switzerland. In particular, Zurich is a lot of new companies that must be reporting of financial performance; and
popular with well-educated people. At the offered good basic conditions. In general,
Greater cooperation with private
same time, the percentage of families Zurich should allow development
businesses to further enhance the
living in the city is declining slightly. No possibilities for new jobs. In the area of
economic wealth of the city. Working
less important is the trend for greater apprentice training, improvements are still
with bodies in the Greater Zurich Area
immigration, and movement into needed so that companies can hire more
and the Cantons, the city is identifying
Switzerland will continue, particularly due apprentices. The appreciation of CSR
areas for development such as
to the strong image that Switzerland (corporate social responsibility) is growing
Machine in the Garden to enhance the
has. Cultural conflicts are also associated among businesses within the city with
citys environment.
with these movements and they must be many companies taking their social
managed. responsibility seriously.
Continued investment in the citys
External and internal challenges infrastructure is of great importance. This
In addressing these important global and includes investment in the areas of
internal trends, the city faces some culture, sports and education as well as
significant external challenges. Some of the the transportation sector. In addition,
principal challenges arise from the investment in private housing as well as in
requirements of the cantons and offices is needed. Effective childcare is
Switzerlands position outside the European seen as one of the most important
Union. Another external challenge is the advantages of the City of Zurich. The city
excessive amount of legal regimentation already co-finances a large number of
and the political system that means even existing nursery schools. Now the
small adjustments require a public vote challenge is to promote innovative
and / or the legitimacy of a referendum. childcare models. Certain city areas also
need to be redeveloped, and for the
The major internal challenge the city faces education and research sector, an
is the fact that every fourth job is linked to expansion of the university is planned
the financial sector or an industrial sector (every third student in Switzerland studies
closely associated with the financial in Zurich). In addressing all of these
sector. As much as 30% of the creation of challenges and opportunities, the
value in Zurich comes from the financial inclusion of different stakeholders (e.g.
sector. Therefore, the financial centre is companies, corporations) is seen as very
simultaneously a cluster risk and a cluster important.
benefit. Other challenges are the greatly
increased demands on public services
(such as infrastructure, the healthcare
system, education, public transportation).
The rise in demand contrasts with the
stagnant economic growth that has
dominated Switzerland during and since
the 1990s. The ratio of government
expenditure in relation to GDP restricts
the room for manoeuvre.
Appendix 1
Lead authors
A wide range of representatives from PwC Big Cities Network
have contributed to the production of this document. It would not
be possible to list the names of all those who have contributed so
generously to the project. Instead a list of the lead authors is set
out below. If you would like any further information, please
contact the relevant person listed below.
Appendix 2
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