Erasmus University Rotterdam Global Urban Competitiveness Project iUrban Conference Barcelona and...

Erasmus University RotterdamGlobal Urban Competitiveness Project

iUrban Conference

Barcelona and the new inclusive growth strategy

Joan TrullénInstitut d’Estudis Regionals I Metropolitans de Barcelona

Vice-president of Strategic Planning Àrea Metropolitana de Barcelona

April 9th, 2014

Contents:

1. Introduction

2. Barcelona 1986-2013: economy and society

3. The new inclusive growth strategy for Barcelona

4. Conclusions

3

Theoretical framework:

The process of economic growth…

Piketty (Capital in the XXI Century): Is it inexorable linked with an increase of inequality?

Kuznets (curve): Is it inexorable linked with the reduction of inequality?

In a stable macroeconomic environment, urban and metropolitan policies can achieve economic growth and greater income equality at the same time

1. Introduction and objectives1. Introduction

4

Cities as actors for inclusive growth

Potential of cities to foster inclusive growth Central role of macroeconomic policies to promote

welfare state Role of urban and metropolitan policies to promote

growth and inclusiveness

Barcelona as an example of success of urban policies that foster inclusive growth between 1985 and 2006

1. Introduction and objectives1. Introduction

Contents:

1. Introduction and objectives



4. Conclusions

6

1. Introduction and objectives2. Barcelona 1986-2013: economy and society

7

The evolution of the metropolis of Barcelona from 1985 to 2006:

1. The metropolis of Barcelona has been a pioneer in the design of urban strategies that promote economic growth and correct the inequality

2. Economic growth between 1985 and 2006 resulted in the creation of 1.2 million new jobs) (Barcelona province).

3. The Gini index of disposable income reduces from 0.39 in 1985 to 0.29 in 2006

1. Introduction and objectives2. Barcelona 1986-2013: economy and society

8


Jobs in Barcelona from 1977 to 2013 and trend for 2023 (thousands)

0tan

25aa

5665

25

0tan

27aa

5665

27

0tan

29aa

5665

29

0tan

2aa5

6652

0tan

4aa5

6654

0tan

6aa5

6656

0tan

8aa5

6658

0tan

10aa

5665

10

0tan

12aa

5665

12

0tan

14aa

5665

14

0tan

16aa

5665

16

0tan

18aa

5665

18

0tan

20aa

5665

20

0tan

22aa

5665

22

0tan

24aa

5665

24

0tan

26aa

5665

26

0tan

28aa

5665

28

0tan

30aa

5665

30

0tan

2aa5

6652

0tan

4aa5

6654

0tan

6aa5

6656

0tan

8aa5

6658

0tan

10aa

5665

10

0tan

12aa

5665

12

0

500

1,000

1,500

2,000

2,500

3,000

1,605.3

2,593.8

2,042.0

f(x) = 30.9923956851588 x + 1261.89921171171

+437

+989

Source: IERMB from INE


9


How has expanded geographically the metropolis of Barcelona?

1. The metropolis of Barcelona between 1986 and 2001 has consolidated as a large European metropolis.

2. In 2001, the metropolitan labor market already included half of the province of Barcelona.

3. The expansion of the metropolis takes place simultaneously with the expansion of the foreign markets in the European Union.


10


The process of territorial expansion of the metropolitan areas in Catalunya. 1986-2001

a) 1986 b) 1991 c) 1996 d) 2001

Source: Trullén and Boix (2000), Boix and Galletto (2004), and Boix and Veneri (2008).


• Territorial expansion and formation of the metropolitan area from 1986

– 164 cities – 4.8 millions inhabitants – 2.2 millions jobs– Employment growth rate:

2.6% annual average from 1991 to 2008.

• Polycentric network of cities

Barcelona

Barcelona

Pla Estratègic Metropolitàde Barcelona

Source: Trullén and Boix (2006)

11

The metropolitan region of Barcelona


12


Contribution of domestic and foreign demand to GDP growth in Spain, in percentage points, 2001 - 2013

Source: INE

Foreign sector1T

200

1

3T 2

001

1T 2

002

3T 2

002

1T 2

003

3T 2

003

1T 2

004

3T 2

004

1T 2

005

3T 2

005

1T 2

006

3T 2

006

1T 2

007

3T 2

007

1T 2

008

3T 2

008

1T 2

009

3T 2

009

1T 2

010

3T 2

010

1T 2

011

3T 2

011

1T 2

012

3T 2

012

1T 2

013

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Contribution of domestic demand Contribution of foreign demand GDP growth

Foreign demandDomestic demand


13


Source: IERMB from WTO Statistics database, DATACOMEX (AEAT) and Eurostat.

0tan

14aa

5665

14

0tan

15aa

5665

15

0tan

16aa

5665

16

0tan

17aa

5665

17

0tan

18aa

5665

18

0tan

19aa

5665

19

0tan

20aa

5665

20

0tan

21aa

5665

21

0tan

22aa

5665

22

0tan

23aa

5665

23

0tan

24aa

5665

24

0tan

25aa

5665

25

0tan

26aa

5665

26

0tan

27aa

5665

27

0tan

28aa

5665

28

0tan

29aa

5665

29

0tan

30aa

5665

30

0tan

1aa5

6651

0%

1%

2%

3%

4%

5%

6%

7%

1.13% 1.47%

0.46% 0.41%

4.70%

5.75%

1.89%1.59%

Catalonia over EU15 Catalonia over World total

Spain over EU15 Spain over World total

Foreign sector


Weight of Catalan and Spanish exports over EU-15 and world, 1995-2012

14


How has the crisis affected the metropolis of Barcelona?

1. The crisis between 2008 and 2013 has led to the destruction of 0.5 million jobs (Barcelona province).

2. The Gini index of disposable income increases from 0.29 in 2006 to 0.33 in 2011.

3. In five years (2006-2011), income distribution has worsened to the level of 1995.


15


Income and living conditions

Source: IERMB, Survey on Living Conditions and Habits of the Population, 1985-2000; Idescat and IERMB, Survey on Living Conditions and Habits of the Population, 2006-2011.

Gini index of disposable income. Barcelona and Barcelona Metropolitan Area (BMA), 1985-2011.


0tan4aa56654

0tan9aa56659

0tan14aa566514

0tan19aa566519

0tan25aa566525

0tan30aa5665300.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.450.398

0.3590.339 0.322 0.308

0.346

0.373

0.304 0.291 0.2890.264

0.301

Barcelona Rest of BMA

16


S80/S20 ratio of disposable income. Barcelona and Barcelona Metropolitan Area (BMA), 1985-2011.




0tan4aa56654

0tan9aa56659

0tan14aa566514

0tan19aa566519

0tan25aa566525

0tan30aa5665300

1

2

3

4

5

6

7

8

97.76

4.794.18

5.14 4.83

6.106.91

4.10 3.79 3.70 3.71

5.15


17


S90/S10 ratio of disposable income. Barcelona and Barcelona Metropolitan Area (BMA), 1985-2011.




0tan4aa56654

0tan9aa56659

0tan14aa566514

0tan19aa566519

0tan25aa566525

0tan30aa5665300

2

4

6

8

10

12

14

16 14.55

7.827.04 6.65 7.11

11.3813.24

6.65

3.764.81 5.01

9.15


18


Type of household according to kinship. Barcelona Metropolitan Area, 1985-2011. Population over 18 years

Note: Data for 1985 refer to the 27 municipalities of the former Metropolitan Corporation of Barcelona.Source: IERMB, Survey on Living Conditions and Habits of the Population, 1985-2000; Idescat and IERMB, Survey on Living Conditions and Habits of the Population, 2006-2011.



1985 1990 1995 2000 2006 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

5.2 7.3 5.9 7.7 8.3 8.33.1 2.5 2.4 3.0 4.6 5.815.2 18.8 16.2

20.125.0

30.2

69.0 64.2 67.0 59.852.6 44.0

6.2 5.5 7.3 8.3 8.0 10.51.2 1.7 1.2 1.0 1.5 1.2

One person without core Two or more people with core Childless coupleCouple with children Parent with children Two or more cores

19


Place of Birth. Barcelona Metropolitan Area, 1985-2011. Population over 18 years




0tan4aa56654

0tan9aa56659

0tan14aa566514

0tan19aa566519

0tan25aa566525

0tan30aa5665300%

10%20%30%40%50%60%70%80%90%

100%

52.2 53.3 60.0 62.2 59.5 52.7

46.1 44.7 38.6 36.329.4

25.3

1.7 2.0 1.5 1.511.1

22.1

Catalonia Rest of Spain Rest of the World

20


Level of finished studies. Barcelona Metropolitan Area, 1990-2011. Population over 18 years




1990 1995 2000 2006 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

62.7 57.6 54.944.6 43.1

19.1 23.7 22.024.9 25.9

18.2 18.7 23.030.5 30.9

Compulsory education or lower Post-compulsary secondary ed.Higher education

Contents:




4. Conclusions

22

1. Introduction and objectives3. The new inclusive growth strategy for Barcelona

Against the crisis: the metropolis of Barcelona

Barcelona is the “engine” of the Spanish exports (20% of Spanish exports)

• Barcelona has to lead the Spanish recovery from the crisis

• So, it’s necessary to enhance the competitiveness and productivity

Territorial factors of productivity:

• Interaction between economy and urbanism

• Metropolitan infrastructures: strategic role of the airport/port and of Intermodal railway station of La Sagrera

The metropolitan strategy has a key role in the recovery from the crisis

23

Local factors to increase productivity

Productivitygrowth

MID

G. Becattini

R.CamagniMetropolis

Porter –KramerSharedValue,

clusters

J. JacobsDiversity

Localization economies

Network economiesUrbanization economies

The “micro” factorthe new firm

Diversity economies


24


Policy strategies for the Barcelona Province

Barcelona

Matarò

Girona Vic

Granollers Igualada.

Lleida

Tarragona

Reus Vilanova i la G.

Vilafrancad.P.

Sabadell Terrassa Martorell

Manresa

Legend

Annual Average GDP Growth Rate 2005-2025

The Proactive Scenario

0,00000-3,529694

3,529695 - 3,848386

3,848387 - 3,953337

3,953338 - 5,188075

Figueres

Tortosa

Orbital New railway lines Existing railway lines Knowledge poles and Knowledge platforms Identity platforms

Source: Trullén 2011, Camagni 2011 ESPON Project


25


Strategy for the metropolitan region of Barcelona: metropolitan area, orbital cities and transversal axis

Source: Own elabotarion.

Rent

Distance from the centre

Productivity levels in the proactive scenario

Productivity levels in the reference scenario

Barcelona and Metropolitan Area Orbital cities and villages Tranversal axis Vic - Manresa - Igualada

Farm land rent

Difference in productivity growth rates: < < Rent in the center

of the metropolis

Source: Trullén 2011


26


The Metropolitan Area of Barcelona and the European mega regions:

a new territorial framework for a new metropolitan strategy

The European mega regional dynamic

The Lyon – Barcelona mega region

Indicators of economic activity

Indicators of innovative activity


27

Mega-region Population km2 inhab/km2

Am-Brus-Twerp 62.331.069 166.218 375

Barce-Lyon 29.067.891 111.816 260

Berlin 4.540.513 5.566 816

Frank-Gart 34.753.485 114.870 303

Glas-burgh 3.863.299 11.852 326

Lisbon 10.459.976 40.974 255

London 51.846.094 111.972 463

Madrid 6.904.141 14.340 481

Paris 24.204.737 97.080 249

Prague 17.778.045 92.606 192

Rom-Mil-Tur 55.614.000 199.791 278

Vienna-Budapest 46.574.691 217.372 214

Total 347.937.941 1.184.456 294

Evolution of the twelve European mega regions (1992-2009)

Source: IERMB

Main characteristics of the European mega regions (2009)

Source: IERMB


28

0tan14aa566514 0tan20aa566520 0tan26aa566526 0tan28aa566528

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000Am-Brus-Twerp

Barce-Lyon

Berlin

Frank-Gart

Glas-burgh

Lisbon

London

Madrid

Paris

Prague

Rom-Mil-Tur

Vienna-Budapest

0tan11aa566511 0tan14aa566514 0tan20aa566520 0tan25aa566525

0

50

100

150

200

250

300

350

400

450Am-Brus-Twerp

Barce-Lyon

Berlin

Frank-Gart

Glas-burgh

Lisbon

London

Madrid

Paris

Prague

Rom-Mil-Tur

Vienna-Bu-dapest

Evolution of the European mega region economic activity (GDP/inhab.)

Source: IERMB

Evolution of the European mega region innovation activity (patents/million inhab.)

All mega regions have experienced an increase in the GDP per capita in the period of 1995-2007. Although there are signs of stagnation of the economy from 2008 because of the current financial crisis.

Regarding the indicator of innovation used in this study (the number of patents per million inhabitants), there is a slight upward trend.

Conclusion: Promote network strategies between cities and metropolis in each mega region based on innovation policies

Source: IERMB


Contents:




4. Conclusions

30

1. Introduction and objectives4. Conclusions

Inequality and economic growth are not inexorably linked: economic and urban and metropolitan policies can and must have a role in fostering growth while at the same time reducing inequalities.

Cities and metropolitan areas are where inequalities are greatest. Limiting the study of inequality to national or regional data may hide this fact. Actually, the focus should be what happens inside metropolitan areas: the Gini index in the centre of the metropolitan area, Barcelona (1.6 million inhabitants), is higher than the rest of the metropolitan area (1.6 million inhabitants).

This fact highlights the usefulness of surveys on income and living conditions conducted on a metropolitan scale.

31


It is possible to identify win-win policies capable of delivering growth while reducing inequalities. Economic growth can be inclusive, while crisis is regressive.

The crucial factor to reduce inequality is to increase the level of employment.

Therefore, urban economic growth policies should be designed from the metropolis to the metropolis to achieve inclusive growth. In this sense, urban and metropolitan economic policy matters.

Promote network strategies between cities and metropolis in each megaregion based on innovation policies

4. Conclusions

Thank you for your attention

Joan Trullén Vice president of Strategic Planning Area Metropolitana de Barcelona

Contact: tel. 00 34 93 506 95 22Email: [email protected]

Erasmus University Rotterdam Global Urban Competitiveness Project iUrban Conference Barcelona and...

Documents

Transcript of Erasmus University Rotterdam Global Urban Competitiveness Project iUrban Conference Barcelona and...