Transcript WORLD BANK CORE URBAN COURSE

World Bank Urban Core Course
Preparing an Economic and
Strategic Vision for a City
4 May 1999
Presented by
Dr. Nigel Harris
URBAN
Preparing an Economic and
Strategic Vision for a City
• The implications of “globalization” and
decentralization for city management –
planning in an open world.
• Understanding the City economy – to achieve
a SWOT analysis: strengths and
weaknesses, opportunities and threats.
URBAN
Preparing an Economic and
Strategic Vision for a City
• The speed of economic restructuring in an
open system - deindustrialization and inner
city crisis of the 1970s. Contrast Hong Kong –
industrialization and deindustrialization in 50
years, without unemployment or urban
dereliction.
• The hidden economy – Mumbhai’s textile
industry; Lima and 60% of the economy
unseen. Managing the economy without data.
URBAN
Preparing an Economic and
Strategic Vision for a City
Trends in big cities today:
• Continuing deindustrialization – dispersal of
industry and populations; the emergence of
major economic regions – the Valley of
Mexico; Mumbhai-Pune-Nasik; the Pearl
River Delta.
• The emergence of the servicing economy –
for example, London.
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Urban logistics and global manufacturing – Hong
Kong’s Li and Fung
`Li and Fung is a spider’s web of manufacturing in 23 countries, with operations
not only in various parts of South-East Asia but also in Latin America, Eastern
Europe, the Caribbean and Mauritius.
`Mr Fung explains how the system works. A foreign company will come to him
with a modest product -–a ball pen, for example, or a simple dress – and ask
him to find out where it can be made more cheaply…Mr Fung’s people set out to
find out not only a source of ever-cheaper labour but also somewhere safe from
trade restrictions on Chinese production. Take that simple dress. The yarn may
be spun in Korea, the fabric woven in Taiwan, the zips bought in Japan and the
garment part-finished in China before it passed through a final stitching factory
in Indonesa…
`Li and Fung has a network of 7,500 regular suppliers, employing an average of
200 workers apiece. In other words, about one and a half million workers..’
The Economist, 20/6/98,
The central role of the city is in organizing the world economy.
URBAN
What kinds of services are the
emerging basis of the city economy?
• Finance and producer services – the Central
Business District
• Trade – the largest employer in developing
countries: wholesale, retail, warehousing,
transport, street sellers.
• Hotels and restaurants – Istanbul and
McDonalds
URBAN
Preparing an Economic and
Strategic Vision for a City
• Information industries – data loading,
processing, software programming – Cd.
Juarez, Bangalore, Shenzhen, Manila (Walt
Disney cartoons; British criminal records) –
immense potential (airline ticketing and
accounting, bank transactions, real estate
transactions etc.
URBAN
Preparing an Economic and
Strategic Vision for a City
• Nontradeables that becomes exports –
– medical services – Bogota eye surgery; Tijuana
and aging America;
– education – using universities as export industries;
URBAN
Preparing an Economic and
Strategic Vision for a City
– culture – London and 215,000 employed;
– sport - “festivalization” – Barcelona
URBAN
Preparing an Economic and
Strategic Vision for a City
• The key role of the transport system – city
junctions.
• The mutual reinforcement effect – culture and
finance; transport accessibility; key role in the
servicing economy of a livable city – public
order, managed traffic, clean water and waste
disposal etc.
URBAN
Preparing an Economic and
Strategic Vision for a City
Developing a city strategy - ``structural change’ and
adaptability.
• The three measures of change over time
– changes in the composition of output of goods and
services (what is expanding, what is contracting);
– in the distribution of the labour force;
© in the geographical distribution – concentration
and dispersal.
– The city support services.
URBAN
Preparing an Economic and
Strategic Vision for a City
• The problems of “aggregation” – Hong Kong’s
“electrical and electronic equipment” – but in
reality just transistor radios.
• The importance of observation – eg the
Mexican border and medical services;
Madras and leather garments.
URBAN
Preparing an Economic and
Strategic Vision for a City
• The projection of trends and scenarios – identifying
the city’s strengths and weaknesses.
• Locating the city in the global context – the threats
and opportunities:
eg Mercosur, NAFTA, the unification of Europe
(Rotterdam’s Rotul); East Asian crisis
• Location the city in the national context – changes
in government policy, interest and exchange rate
changes, investment projects
URBAN
Preparing an Economic and
Strategic Vision for a City
• The importance of collaboration, pooling
knowledge – the business associations know
fragments of the micro economy better than
any economist can.
• The idea of the City Forum – government,
business associations, trade unions, political
parties, NGOs, universities, community
organisations and concerned citizens.
URBAN
Preparing an Economic and
Strategic Vision for a City
• The emergence of “consensus planning” –
the politics of collaboration replace the
technically expert Master Plan, scenarios
statutory direction etc.
• Flexibility and rigidity – operating in a global
context
URBAN
Preparing an Economic and
Strategic Vision for a City
• Institutional supports – Economic
Development Corporations; Economic
Development Units in City Hall
• The problem of data – the City Statistical
Yearbook – for the officials, citizens, for
promotion - a precondition for transparency,
accountability and participation
URBAN
Preparing an Economic and
Strategic Vision for a City
• Research and monitoring – city institutes
(Shanghai Economic Development Institute;
Nagoya Urban Improvement Centre);
Chambers of Commerce and Partnership
research work; independent institutes –
Bogota’s Siglo XXI.
• The city as a concentration of intelligence –
and how to organize it for effective economic
management
URBAN
Preparing an Economic and
Strategic Vision for a City
- Breakout questions
1.What do you think the economic strengths and
weaknesses of your city are?
2.What kinds of export services are likely to be
developed in your city in the foreseeable
future?
3.What in your view are the key issues in the
economic environment likely to affect your city?
4.What in your view are the key issues on the
national economic environment affecting your
city?
URBAN