Local Development and Competitiveness: Global Perspectives · Quality of life, place, services iv....

Local Development and Competitiveness: Local Development and Competitiveness: Global PerspectivesGlobal Perspectives

Greg ClarkGreg Clark

CAF CongressCAF Congress

CordobaCordobaArgentina, November 2009Argentina, November 2009

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My agendaMy agenda

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History of Globalisation

•Globalisation is not a new phenomenon,

•Took off in the late 19th Century

•World War I period of retreat but further waves of globalisation.

•The current wave: scale and pace of change; the international fragmentation of production and the maturity of international capital markets.

“Globalisation is the growing economic interdependence of countries worldwide through increasing volume and variety of cross-border transactions in goods and services, free international capital flows, and more rapid and widespread diffusion of technology.” – International Monetary Fund

Megatrends: Global economic integrationMegatrends: Global economic integration

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Megatrends: An urbanising worldMegatrends: An urbanising world

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Globalisation and the knowledge economy have Globalisation and the knowledge economy have repositioned repositioned metropolitan regions metropolitan regions as drivers of as drivers of national economies:national economies:

2025: 75% of world population will live in cities/metropolitan areas

2025: 17 of world’s 25 largest cities will be in coastal regions in Asia

1925: 25% of world population lived in cities

Is city or regional success predictable?

Think aboutThink about

MilanMilan

BerlinBerlin

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100000 250000 350000 500000 1000000 2000000Population in core city

International

Hubs

Regional Poles

Specialised Poles

Gateways

Satellite towns

Reinvented capitals

Modern industrialcentres

Knowledge hubs

Established capitals

De-indus-trialised cities

National service hubs

Research centres

Transformation poles

Visitor centres

Regional market centres

Regional public service centres

www.citiesandregions.comwww.citiesandregions.com 77

Framework for city & metropolitan growth Framework for city & metropolitan growth

Pre-conditions

Business environment & investment

Educational and research

base

Land and physical

infrastructure

Social/ cultural infrastructure &

quality of life

Ecological base

.

Innovation & creativity

Industrial structure

Business ownership & mgt

Human capital

Connectivity .

Use of resources

Productivity Population

Economic growth performance

Drivers

Global economy and Macro-economic

framework

Feedback effects

Markets

Governance structure

.

Environ mgt

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How do cityHow do city--regional economies grow?regional economies grow?6 basic approaches.6 basic approaches.

i.i. Share of global marketsShare of global markets and position in and position in value chainsvalue chains..(population, trade, production, services, etc). Links to sectors(population, trade, production, services, etc). Links to sectors..

ii.ii. ProductivityProductivity..(innovation/creativity, skills & workforce, enterprise, investme(innovation/creativity, skills & workforce, enterprise, investment & nt & infrastructure, employment, competition). infrastructure, employment, competition).

iii.iii. Tackling Tackling market failuresmarket failures and and coco--ordination/government failuresordination/government failures..(failures to balance supply and demand, failures to regulate/co(failures to balance supply and demand, failures to regulate/co--ordinate/facilitate/ameliorate effectively, quality of services)ordinate/facilitate/ameliorate effectively, quality of services)..

iv.iv. Addressing Information asymmetriesAddressing Information asymmetries..Market does not know what you offer, or actors do not know what Market does not know what you offer, or actors do not know what each other each other are doing.are doing.

v.v. Promoting AgglomerationPromoting Agglomeration..Clusters of firms interClusters of firms inter--trading and sharing place based resources and trading and sharing place based resources and advantages such as services, workforce, infrastructures, supplieadvantages such as services, workforce, infrastructures, suppliers.rs.

vi.vi. Leveraging unique local assetsLeveraging unique local assets..The distinctive aspects of place created by economic history, phThe distinctive aspects of place created by economic history, physical and ysical and human geography, legacy of previous investment/policy.human geography, legacy of previous investment/policy.

The world’s most successful cities.......Medium term measures of city success...

i.i. Connectivity and space to growConnectivity and space to growii.ii. Environmental PerformanceEnvironmental Performanceiii.iii. Quality of life, place, servicesQuality of life, place, servicesiv.iv. Skills of Skills of labourlabour force and human capitalforce and human capitalv.v. Innovation and creativityInnovation and creativityvi.vi. EntrepreneurshipEntrepreneurshipvii.vii. Industrial structureIndustrial structureviii.viii. CostCost--base of citiesbase of citiesix.ix. Transparency of business environmentTransparency of business environmentx.x. Identity and Brand buildingIdentity and Brand building

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The world’s most successful cities....Longer term measures of city success...

i.i. Distinctiveness, Values, and Power of the city identity and branDistinctiveness, Values, and Power of the city identity and branddii.ii. Location and access to growing markets and Role of city in Location and access to growing markets and Role of city in

international tradeinternational tradeiii.iii. Human Capital formation in the long termHuman Capital formation in the long termiv.iv. Power of influence of language and regulatory/legal systemsPower of influence of language and regulatory/legal systemsv.v. Depth of artistic, architectural, and cultural endowment, role iDepth of artistic, architectural, and cultural endowment, role in n

Scientific and Technological discovery and innovationScientific and Technological discovery and innovationvi.vi. Continuity in City leadership and regional coContinuity in City leadership and regional co--ordinationordinationvii.vii. Adaptability and success in adjusting to shocks and luck in beinAdaptability and success in adjusting to shocks and luck in being on g on

the right side of conflictsthe right side of conflictsviii.viii. Investment in the city from all sources (including higher tiers Investment in the city from all sources (including higher tiers of of

government)government)ix.ix. Sustainability in terms of climate and environmental sensitivitySustainability in terms of climate and environmental sensitivityx.x. Openness to International PopulationsOpenness to International Populations

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Case studies of current metropolitan Case studies of current metropolitan plans......plans......

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City City Region PlanLondon Greater South East London Plan (2004), TfL Business Plan

(2008)

New York City Tri State Area MTA Capital Plan (2005), A Region at Risk (1996) and PlaNYC (2007)

Paris Ile de France Schéma Directeur de la Région Ile-de-France (SDRIF) (2008)

Toronto Greater Toronto Area Growth Plan for the Greater Golden Horseshoe

Hong Kong PRD Hong Kong 2030 (2001)

Chicago Chicago Metropolitan Region

Go to 2040 (2007)

Miami Greater Miami and South Florida

Strategic Regional Transit Plan (2006)

Tokyo Greater Tokyo Area 10 Year Plan (2006)

London: London Plan (2004)London: London Plan (2004)

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Plan typePlan typeStrategic and Spatial PlanStrategic and Spatial Plan

AimAimTo To ‘‘accommodate Londonaccommodate London’’s growth within its boundaries without encroaching s growth within its boundaries without encroaching on open spaces.on open spaces.’’ ..‘‘The best big city in the worldThe best big city in the world’’..

ScaleScaleGreater LondonGreater London

ThemesThemesOpportunity AreasOpportunity Areas: : include major include major brownfieldbrownfield sites and places with potential for sites and places with potential for significant increases in density, jobs and homes.significant increases in density, jobs and homes.Areas for IntensificationAreas for Intensification: : potential for more intensive use potential for more intensive use –– and for more varied and for more varied use.use.Areas for RegenerationAreas for Regeneration: : currently suffer substantial social exclusion and currently suffer substantial social exclusion and economic deprivation, and where development can play a key role economic deprivation, and where development can play a key role in pursuing in pursuing the Mayorthe Mayor’’s vision. s vision.

www.citiesandregions.comwww.citiesandregions.com

WESTERN WEDGE

LEE VALLEY

THAMES GATEWAY

WANDLE VALLEY

BROMLEY

ROMFORD

ILFORDHARROW

KINGSTON

SUTTON

WOOD GREEN

CROYDON

EALING

HOUNSLOW

New York City:New York City:PlanNYCPlanNYC (2005(2005--9)9)

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Plan typePlan typeSustainable Development Plan. Quality of life plan.Sustainable Development Plan. Quality of life plan.

AimAimPlanning the NYCPlanning the NYC’’s environmental future up to 2030. s environmental future up to 2030. To reduce New YorkTo reduce New York’’s global warming emissions by 30%s global warming emissions by 30%..

ScaleScaleWithin New York City 5 Boroughs.Within New York City 5 Boroughs.

DetailDetailLand: Land: Create homes for almost a million more New Yorkers, while makingCreate homes for almost a million more New Yorkers, while making housing more housing more

affordable and sustainableaffordable and sustainable

Air: Air: Achieve the cleanest air quality of any big city in AmericaAchieve the cleanest air quality of any big city in America

Water: Water: Develop critical backup systems for aging water network to ensurDevelop critical backup systems for aging water network to ensure longe long--term reliabilityterm reliabilityenergy and transportation energy and transportation

Energy: Energy: Provide cleaner, more reliable power for every New Yorker by upgProvide cleaner, more reliable power for every New Yorker by upgrading our energy rading our energy infrastructureinfrastructure

Transportation: Transportation: Reach a full Reach a full ““state of good repairstate of good repair”” on New York Cityon New York City’’s roads, subways, and s roads, subways, and rails for the first time in historyrails for the first time in history

Toronto: Growth Plan for the Toronto: Growth Plan for the Greater Golden Horseshoe (2006)Greater Golden Horseshoe (2006)

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Plan typePlan typeMetropolitan and Regional planning document. Metropolitan and Regional planning document. Infrastructure investment and landInfrastructure investment and land--use planning use planning as part of a blueprint on landas part of a blueprint on land--use, transport planning,use, transport planning,brownfieldbrownfield redevelopment and green spaces. redevelopment and green spaces.

Created byCreated byProvincial Government of OntarioProvincial Government of Ontario

ScaleScaleRegional and 25 years in durationRegional and 25 years in duration

Goals and challengesGoals and challengesTo resolve the negative aspects associated with rapid growth, suTo resolve the negative aspects associated with rapid growth, such as ch as increased congestion, deteriorating air and water quality, and tincreased congestion, deteriorating air and water quality, and the he disappearance of agricultural lands and natural resources. disappearance of agricultural lands and natural resources.

DetailDetailTwo years of consultationTwo years of consultation

2020

Golden Horseshoe urban land boundary

Hong Kong: Hong Kong 2030 Hong Kong: Hong Kong 2030 (2001)(2001)

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Plan typePlan typeSpatial development strategy and infrastructure planSpatial development strategy and infrastructure planProvides a highly robust framework for developingProvides a highly robust framework for developingthe spatial environment according to new social, the spatial environment according to new social, economic and environmental needs.economic and environmental needs.

Aims toAims toProvide a comprehensive framework for Hong KongProvide a comprehensive framework for Hong Kongto strive towards being the most cosmopolitan city in Asia, to strive towards being the most cosmopolitan city in Asia, ‘‘enjoying a status enjoying a status comparable to that of New York in North America and London in Eucomparable to that of New York in North America and London in Europe.rope.’’The world first bilingual city.......The world first bilingual city.......

ScaleScaleRegional. Until 2030Regional. Until 2030

In responseIn responseTo the positive and negative aspects associated with the regionTo the positive and negative aspects associated with the region’’s extraordinary s extraordinary growth. growth.

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PRD Regional Specialisation

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Opening up the Pearl River Delta

SchSchéémama directeurdirecteur de la de la rréégiongion IleIle--dede--France (SDRIF) (2008)France (SDRIF) (2008)

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Plan typePlan typeComprehensive strategic and spatial Comprehensive strategic and spatial masterplanmasterplan

AimAimTo provide a comprehensive infrastructural vision for the futureTo provide a comprehensive infrastructural vision for the futureAct as the key tool which coordinates complex and fragmented locAct as the key tool which coordinates complex and fragmented local al urban policies into a wider longurban policies into a wider long--term frameworkterm frameworkTo provide strategic spatial guidance to broad range of public pTo provide strategic spatial guidance to broad range of public policies olicies and private actorsand private actors

ScalesScales25 years25 years and and RegionalRegional

DetailDetailAccompanying the plan is a 1:150,000 scale map covering the entiAccompanying the plan is a 1:150,000 scale map covering the entire re 12,000km12,000km22 region graphicallyregion graphicallyActualised by a large volume of funding that resides at the regiActualised by a large volume of funding that resides at the regional tier onal tier ((€€4 billion basic budget alone in 2007) 4 billion basic budget alone in 2007)

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SDRIF: Growth corridors SDRIF: Regional connectivity

SDRIF: Multi-modal transport plan SDRIF: Regional green space

Competitiveness and Economic Development

Sector tables: 1Financial and business services, logistics and IT all feature prominently as established sectors with considerable potential in spite of the economic slowdown

Sector tables: 2Medicine/life sciences, green technology, multimedia and video-based industries all appear strongly as future areas of strength in recent world city economic strategies

The Crisis is a message to cities and metropolitan areas.

Global recession: implications for local Global recession: implications for local economic leadershipeconomic leadership

"Barcelona, even in these "Barcelona, even in these times, especially in these times, especially in these times, is a solid project, a solid times, is a solid project, a solid reality...construction of this reality...construction of this solid reality will enable us to solid reality will enable us to tackle, and overcome, a tackle, and overcome, a complex period of our economic complex period of our economic and social history. So, building and social history. So, building the future of Barcelona and the future of Barcelona and fighting the crisis are one and fighting the crisis are one and the same the same thing."thing."Jordi Hereu, Mayor of Barcelona

"In these difficult economic times, we "In these difficult economic times, we are going to need Team Glasgow to are going to need Team Glasgow to pull together more than ever. This is pull together more than ever. This is not a time for any of us to retreat into not a time for any of us to retreat into our bunkers, whether it's public our bunkers, whether it's public agencies or private commerce, we agencies or private commerce, we must stick together and do what is must stick together and do what is right for our city." right for our city." Steven Purcell, Glasgow City Council Leader

Hong Kong "will not be stingy, Hong Kong "will not be stingy, and will increase relief and will increase relief measures in the middle of the measures in the middle of the year should it be necessary to year should it be necessary to ease the public's worries." ease the public's worries." Donald Tsang, Hong Kong Chief Executive/Mayor

"If we have learned anything from the "If we have learned anything from the postpost--9/11 years, it is that cities cannot 9/11 years, it is that cities cannot wait for national governments to take wait for national governments to take action... When Wall Street catches a action... When Wall Street catches a cold, the rest of the city sneezes. That cold, the rest of the city sneezes. That is not going to change anytime soon, is not going to change anytime soon, but it is our job to prevent that sneeze but it is our job to prevent that sneeze from becoming pneumonia.from becoming pneumonia.”” Mayor Bloomberg of New York

The global recession and its implications for The global recession and its implications for local and regional economieslocal and regional economies

Banking Crisis Global recession Global economic shift

Credit Crunch

Characterised by:

Which localities?

Locality impacts:

Medium-term success:

Long-term success:

Sustainable and connected local economies with a clear Vision/Identity

Competitiveness & diversification

Resilience and readiness for the upturn

Open and aware localities

• Lower tax yields • Higher social costs• Reduced trade and tourism• Job losses

• New investors • New partners• Reorganisation of old urban settlement hierarchies

Financial hubsDebt ‘users’

Most, if not all localities Most, if not all localities

•Difficulty obtaining credit•Fall in demand

•Globalisation of economic difficulties•Slowdown in global capital flows

•Globalisation of economic difficulties•Slowdown in global capital flows

• Lower tax yields • Higher social costs• Reduced trade & tourism• Job losses

The Barcelona PrinciplesThe Barcelona Principles

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1. “Don’t waste the crisis, but respond with leadership and purpose”- Provide pro-active and collaborative leadership at the city level-Use the crisis to make long term change. Make the crisis a catalyst for good. 2. “Make the case for public investment”- Make the case for continued public investment and public services and the taxes and other sources of investment required. 3. “Build a robust long term strategy”- In the long term: build city strategies which align with long term drivers and identify future sources of jobs, enterprise, and innovation.4. “Purposeful short term action is needed”- In the short term: focus on retaining productive people, business, incomes, jobs, and investment projects.5. “Address private investment attraction and readiness”- Build the tools and approaches to attract and retain investment over the long term.

The 10 The 10 ‘‘Barcelona PrinciplesBarcelona Principles’’ principles for city and Regional principles for city and Regional Leadership during the downturnLeadership during the downturn

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The 10 The 10 ‘‘Barcelona PrinciplesBarcelona Principles’’ principles for city and Regional principles for city and Regional Leadership during the downturnLeadership during the downturn

6. “Relationships matter and need increased attention”- Building genuine long term relationships with the private sector, trade unions, and other key partners.7. “Ensure effective public works and major investments”- Take steps to ensure the sustainability and productivity of public works, infrastructure, and major developments/events. 8. “Stay close to the people”- city leaders should act purposefully to support their citizens in the face increased hardship, and focus on human capital as the key to long term success.9. “Stay open to the World”- city economies have benefitted and should continue to benefit from being open and attractive to international populations and capital10. “Build National-city alliances”- Communicate and align with National and other higher tiers of Government.

Local and metropolitan development responses to the crisis are a site of leadership and innovation. The crisis has given rise to new leadership and new strategies and has ‘reinvented local and metropolitan development’ in several ways. Many local leaders have seen the crisis an opportunity to embrace new strategic thinking about the future and focus on building sustainable, adaptable, and more distinctive local economies and metropolitan areas in the future.

New economic strategies: New economic strategies: Focus around distinctiveness, high skills, talent Focus around distinctiveness, high skills, talent attraction and innovationattraction and innovation

New investment strategies:New investment strategies: New and innovative approaches to partnering and New and innovative approaches to partnering and delivering with the delivering with the private sectorprivate sector

New partnerships with higher tiers of government: New partnerships with higher tiers of government: New long term working New long term working relationships with central government in particular relationships with central government in particular based on more flexibility and local autonomybased on more flexibility and local autonomy

New focus on efficiency:New focus on efficiency: Drive for improved quality at lower costsDrive for improved quality at lower costs

Towards long term recovery and reinvestmentTowards long term recovery and reinvestment

Competitiveness and Local Development

Winners and losers Winners and losers –– but scope for but scope for collaboration.collaboration.

StrategyStrategyOrganisationOrganisationInvestmentInvestmentLeadershipLeadershipwww.citiesandregions.comwww.citiesandregions.com 3636

1. StrategyWhat should economic strategy do?i.i. Unique value proposition and identity.Unique value proposition and identity.ii.ii. Honest and robust SWOT. Identify challenges to Honest and robust SWOT. Identify challenges to

be addressed.be addressed.iii.iii. Set vision and define priorities.Set vision and define priorities.iv.iv. Identify investment opportunities and priorities.Identify investment opportunities and priorities.v.v. Translate into tangible actions.Translate into tangible actions.vi.vi. Common purpose for stakeholders.Common purpose for stakeholders.vii.vii. Leverage and mobilise resources.Leverage and mobilise resources.viii.viii. Benchmark progress.Benchmark progress.

Why do many city strategies fail?Why do many city strategies fail?

i.i. Strategy done for Strategy done for wrong reasonwrong reason /strategy has no focus or /strategy has no focus or specificity. No specificity. No intentionintention to implement.to implement.

ii.ii. Lack of leadershipLack of leadership and cross city working.and cross city working.iii.iii. No No communicationcommunication, compacting, and conviction., compacting, and conviction.iv.iv. No No assessment assessment of local assets and distinctiveness.of local assets and distinctiveness.v.v. No No assessmentassessment of demand side opportunities.of demand side opportunities.vi.vi. No No responsibilityresponsibility to deliver amongst competent bodies.to deliver amongst competent bodies.vii.vii. Lack of Lack of toolstools to implement at scale.to implement at scale.viii.viii. Lack of Lack of investmentinvestment, capacity/resources., capacity/resources.ix.ix. Failure to Failure to solve problemssolve problems as they arise.as they arise.x.x. No No supportsupport from higher tier Govs, or neighbours.from higher tier Govs, or neighbours.

2. Organisation and Institutional Framework2. Organisation and Institutional Framework

1. Representation.1. Representation.2. Services.2. Services.3. Regulation.3. Regulation.4. 4. Development and Investment.Development and Investment.

This 4This 4thth role is role is different......different...........requires additional expertise, and new .....requires additional expertise, and new structures and arrangementsstructures and arrangements

Four roles of city government:Four roles of city government:

Build Support for Economic DevelopmentBuild Support for Economic Development

Success.Success.Rising tax base with lower Rising tax base with lower taxes.taxes.Employment and incomes Employment and incomes for citizens and choice of for citizens and choice of jobs.jobs.Resources for social and Resources for social and environmental programmes.environmental programmes.Multiple distinctive and Multiple distinctive and attractive locations.attractive locations.Managed growth and Managed growth and investment.investment.Increased global Increased global connectivity.connectivity.Strong collaborations.Strong collaborations.

FailureFailureDwindling tax base with Dwindling tax base with high taxes.high taxes.Reduced resources for other Reduced resources for other programmes.programmes.Environmental degradation.Environmental degradation.High unemployment and High unemployment and high emigration.high emigration.Disinvestment.Disinvestment.Failed projects and Failed projects and initiatives. Bickering.initiatives. Bickering.Reduced global Reduced global connectivity.connectivity.Unmanaged decline.Unmanaged decline.

Features of effective city organisingFeatures of effective city organising

1.1. One Plan One Voice One Identity;One Plan One Voice One Identity; and strong story line. An and strong story line. An investment prospectus.investment prospectus.

2.2. Economic agendaEconomic agenda across whole City Gov, not within one across whole City Gov, not within one department, and embraces whole city, not just city department, and embraces whole city, not just city govgov..

3.3. Organised business leadershipOrganised business leadership that is demanding and consistent and that is demanding and consistent and speaks to all orders of Government.speaks to all orders of Government.

4.4. Customer orientationCustomer orientation: employers, investors, visitors, : employers, investors, visitors, entrepreneurs, traders, innovators, developers, infrastructureentrepreneurs, traders, innovators, developers, infrastructure……

5.5. Focussed number of Focussed number of top prioritiestop priorities, sectors, and spaces., sectors, and spaces.6.6. Expanding Expanding capacity to implementcapacity to implement. Range of financing tools.. Range of financing tools.7.7. Range of Range of delivery vehiclesdelivery vehicles that can that can attract external investmentattract external investment..8.8. Problem SolvingProblem Solving and and Project ManagementProject Management orientation. orientation. 9.9. Strong Strong economic agenda and partnershipseconomic agenda and partnerships with:with:

Local public sector, Local and regional Private Sector. RegionalLocal public sector, Local and regional Private Sector. Regional public partners, public partners, Provincial and Federal Governments, Global partners.Provincial and Federal Governments, Global partners.

10.10. A collaborative leadership that leads, empowers, A collaborative leadership that leads, empowers, focuses on big focuses on big picture and leverages resources to deliverpicture and leverages resources to deliver..

Development Agencies and Companies

OECD LEED Programme Book OECD LEED Programme Book (December 2009)(December 2009)

Best practice from Best practice from 16 development agencies 16 development agencies fromfrom 13 13 cities cities across the globe:across the globe:

-- Johannesburg Development AgencyJohannesburg Development Agency-- Auckland PlusAuckland Plus-- Barcelona Barcelona ActivaActiva-- The Cape Town PartnershipThe Cape Town Partnership-- Creative SheffieldCreative Sheffield-- Milano Milano MetropoliMetropoli-- Abyssinian Development CorporationAbyssinian Development Corporation-- NYC Economic Development CorporationNYC Economic Development Corporation-- Bilbao MetrolpoliBilbao Metrolpoli--3030

-- Bilbao Ria 2000-- HafenCityHafenCity Hamburg GmbHHamburg GmbH-- Build TorontoBuild Toronto-- Invest TorontoInvest Toronto-- Prospect LeicestershireProspect Leicestershire-- Madrid GlobalMadrid Global-- Liverpool VisionLiverpool Vision

Development and Revitalisation Agencies

Productivity and Economic Growth Agencies

Integrated Economic Agencies

Internationalisation Agencies

Visioning and Partnership

Description“Place

drivers”“Productivity

drivers”“Place and

productivity managers”

“Place and productivity promoters”

“Place Shapers”

Specific example

• Abyssinian Development Corporation

• BILBAO Ría2000

• Build Toronto• HafenCity• JDA

• Auckland Plus

• Barcelona Activa

• Creative Sheffield

• Liverpool Vision

• New York City Economic Development Corporation

• Prospect Leicestershire

• Invest Toronto

• Madrid Global

• Cape Town Partnership

• Bilbao Metropoli-30

Development Agency typologies

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Developing the urban development Developing the urban development systemsystem

i) Rowing ii) Steering

iii) Cheering iv) Coaching

Cape Town Partnership Cape Town Partnership (est. 1999)(est. 1999)

MissionMission• “The CTP strives to develop, manage and promote the Cape Town Central City

as a place for all and a leading centre for commercial, retail, residential, cultural, tourism, education, entertainment and leisure activities.”

Core functionsCore functions•• CTP: CTP: mobilise public and private sectors, comobilise public and private sectors, co--ordinate and facilitate urban ordinate and facilitate urban development programmes, consolidate the City Centre as the heartdevelopment programmes, consolidate the City Centre as the heart of Cape Town, of Cape Town, guide decisionguide decision--making, broaden access to benefit the whole city. making, broaden access to benefit the whole city. •• CCID: CCID: security, urban management, social development, marketing.security, urban management, social development, marketing.

Key projectsKey projects•City Centre Development Strategy, Creative Cape Town, Green City Initiative, World Cup 2010, Public Space for Public Life.

Annual budget and finance mechanismAnnual budget and finance mechanism• Combined CTP/CCID budget is approximately ZAR 30 million per annum.•• City of Cape Town annual grant, CCID fees, parking and film income.

ScaleScale•• City Centre. Staff of 28.City Centre. Staff of 28.

Cape Town: the local development systemCape Town: the local development system

3. Investment3. Investment

“Closing the Investment Gap in Europe’s Cities”

ULI Publication (February 2009)

“Value Capture Finance”

ULI Publication (October 2009)


Key questionsKey questions

i.i. Is local development an investment or Is local development an investment or an expenditure for Governments?an expenditure for Governments?

ii.ii. Why are there so many investment gaps Why are there so many investment gaps in local economies?in local economies?

iii.iii. Do these gaps need to be addressed? Do these gaps need to be addressed? What are the costs of not closing them?What are the costs of not closing them?

iv.iv. What can we do about it?What can we do about it?v.v. What is the new generation of tools and What is the new generation of tools and

approaches?approaches?


Investing in City and Regional Investing in City and Regional Economic Development.Economic Development.

Private sector coPrivate sector co--investment is an important quest.investment is an important quest.Role of regions and cities is to Role of regions and cities is to ‘‘investableinvestable’’ and and ‘‘investmentinvestment--readyready’’..Reduce risks and costs, improve returns, help to Reduce risks and costs, improve returns, help to build steady flow of propositions. Conditions of a build steady flow of propositions. Conditions of a growing market.growing market.Economic Development Strategy as Economic Development Strategy as ‘‘Investment Investment ProspectusProspectus’’..Good for Cities and Regions.Good for Cities and Regions.Good for Private Sector.Good for Private Sector.Key roles for national and multiKey roles for national and multi--national national organisations.organisations.Build partnership with investment sector.Build partnership with investment sector.


Public/Private Finance.Public/Private Finance.

Why? What is the incentive structure?Why? What is the incentive structure?Public Goals.Public Goals.–– More Capital, rebuild regional/local investment markets, More Capital, rebuild regional/local investment markets,

commercial commercial discipline,attractsdiscipline,attracts wider interest, more wider interest, more sustainable, investment rather than expenditure.sustainable, investment rather than expenditure.

Private Goals.Private Goals.–– New business lines and markets, diversification of New business lines and markets, diversification of

business, ethical or CSR priorities, predictable returns, business, ethical or CSR priorities, predictable returns, new relationships and influence, strengthen local new relationships and influence, strengthen local economies and improve performance of related economies and improve performance of related investments.investments.

The Investment GapThe Investment Gap

The city and regional investment gap is about The city and regional investment gap is about more than more than just moneyjust money::

i.i.Capital gapsCapital gaps: : Funding and financeFunding and finance

ii.ii.Knowledge gapsKnowledge gaps: : Skills, management, expertiseSkills, management, expertise

iii.iii.Institutional framework gapsInstitutional framework gaps: :

Legal frameworks and administrative capacitiesLegal frameworks and administrative capacities

iv. Collaboration gapsiv. Collaboration gaps:: Communication, leadership, trustCommunication, leadership, trust..


Investment: 10 principles for city Investment: 10 principles for city investmentinvestment

i.i. Smart finance for smart cities and regions: getting the fiscal Smart finance for smart cities and regions: getting the fiscal relationships with higher tiers of Government rightrelationships with higher tiers of Government right

ii.ii. Promote active private sector leadership in city & regional Promote active private sector leadership in city & regional investmentinvestment

iii.iii. Metropolitan finance for metropolitan amenitiesMetropolitan finance for metropolitan amenitiesiv.iv. Sharing the benefits of growth locallySharing the benefits of growth locallyv.v. Flexibility in public funding to enable private coFlexibility in public funding to enable private co--investmentinvestmentvi.vi. A new approach to public assetsA new approach to public assetsvii.vii. Financial innovation in public and private sectorsFinancial innovation in public and private sectorsviii.viii. Long term market building by the private sectorLong term market building by the private sectorix.ix. Focus on the quality of the propositions not on the supply of Focus on the quality of the propositions not on the supply of

financefinancex.x. Build capable specialist intermediariesBuild capable specialist intermediaries

Investment Summit

New relationship.Investment strategy.New Investment Funds.Value Capture.PPPs.Public Land.Joint Ventures.Key role for multi‐lateral lending institutions.New role for equity investors.

5. Leadership5. Leadership

http://www.standsup.com/news/The Lord Mayor of Sydney, Clover Moore MP

Leadership challenges in Leadership challenges in internationalising cities and regions.internationalising cities and regions.

i.i. TransitionTransition to a new economy and its to a new economy and its business requirementsbusiness requirements

ii.ii. Speed of adjustment to Speed of adjustment to post oil economy and low carbon futurespost oil economy and low carbon futures

iii.iii. OpennessOpenness to international populationsto international populations

iv.iv. Rapid and Rapid and dynamic growth dynamic growth of metropolitan regionsof metropolitan regions

v.v. Service needs Service needs of dynamic populations and businessesof dynamic populations and businesses

vi.vi. Greater Greater transparencytransparency to customers and stakeholderto customers and stakeholder

vii.vii. Investment not enough. Financial resources are finite and nationInvestment not enough. Financial resources are finite and national public finance al public finance is slow to follow growth. is slow to follow growth. Lack of investment toolsLack of investment tools

viii.viii. Formal power and Formal power and competencecompetence less than neededless than needed. City and regional governments . City and regional governments do not control everything: boundaries, competences, division of do not control everything: boundaries, competences, division of labour with labour with higher/lower tiers, markets, regulation/freedomhigher/lower tiers, markets, regulation/freedom

ix.ix. National and subNational and sub--national governments guard their own space. Cnational governments guard their own space. Coo--ordination ordination challengeschallenges

A leadership dividend?A leadership dividend?

•• City development is City development is not accidentalnot accidental•• 4 roles 4 roles of city governmentsof city governments

•• City Development is led by city governments City Development is led by city governments BUT BUT not like not like other local other local municipal services:municipal services:-- A market facing activity operating over longer timeframesA market facing activity operating over longer timeframes-- With broader geographies than municipal boundariesWith broader geographies than municipal boundaries-- Aimed at stakeholders who are often not local citizens/votersAimed at stakeholders who are often not local citizens/voters-- An activity that needs publicAn activity that needs public--public, publicpublic, public--private, and privateprivate, and private--

private coprivate co--ordinationordination-- Benefits from specialist skill sets and specialist bodiesBenefits from specialist skill sets and specialist bodies-- Requiring wide collaboration, which demandsRequiring wide collaboration, which demands

= = Exceptional leadership skills Exceptional leadership skills amongst local government leaders andamongst local government leaders andtheir partners their partners is essential is essential as are as are leadership teams.leadership teams.

What role for business groups in the city development system?

Negotiate Advocate with Gov

Attract & retention

Regcollab

Bus know how

Comms & media CSR Int best

practicePay for

activitiesX Party collab

Wider particip

i. Advocating and negotiating power. Advocating and negotiating power.

ii. Business attraction and retention. Business attraction and retention.

iii. Regional/Metro collaboration. Regional/Metro collaboration.

iv. Bringing business knowBringing business know--how.how...

v. Communication. Communication.

vi. vi. Corporate Social Responsibility. Corporate Social Responsibility.

vii. vii. International perspective. International perspective.

viii. viii. Pay for certain activities. Pay for certain activities.

ix. ix. Cross party collaboration. Cross party collaboration.

x. x. Broker wider participation. Broker wider participation.

What unique contribution can business leadership and membership groups make?

Cape TownCape Town

NanjingNanjing

AarhusAarhus


The Cape Town Partnership (CTP) and the City The Cape Town Partnership (CTP) and the City Centre Improvement District (CCID)Centre Improvement District (CCID)

Cape Town Partnership:Cape Town Partnership:The CTP strives to The CTP strives to developdevelop, , managemanage and and promotepromote the Cape Town Central City as a the Cape Town Central City as a

place for all and a leading centre for commercial, retail, residplace for all and a leading centre for commercial, retail, residential, cultural, ential, cultural, tourism, education, entertainment and leisure activities tourism, education, entertainment and leisure activities globallyglobally’’

Central City Improvement District:Central City Improvement District:Security; Urban management and cleansing; Social development andSecurity; Urban management and cleansing; Social development and job creation; job creation;

and Local marketing and communicationsand Local marketing and communications

Rowing Steering Cheering CoachingDepth and breadth of role

Specific example

• Provision of safety, cleansing, urban management and social development services.

• Management of the Central City Improvement District (CCID).

• Use of local press and media to stimulate public debate and engagement.

• 2010 Central City Partners Forum.

• Central City walking tours.

• Mentoring a number of the 18 other City Improvement Districts (CIDS) in the City

1998 1998 –– 2008: 10 years of achievement in the City 2008: 10 years of achievement in the City CentreCentre

Key projectsKey projects•• City Centre Development Strategy, Creative Cape Town, Green CityCity Centre Development Strategy, Creative Cape Town, Green City

Initiative, World Cup 2010, Public Space for Public Life. Initiative, World Cup 2010, Public Space for Public Life.

Key achievementsKey achievements•• R16 billion total cumulative investment in City CentreR16 billion total cumulative investment in City Centre•• Commercial property vacancy fall from 10% to 6% Commercial property vacancy fall from 10% to 6% •• Reduction in crime and perception of crimeReduction in crime and perception of crime•• 55 000 construction55 000 construction--related jobs, 500 direct jobs in basic services related jobs, 500 direct jobs in basic services

provided by CIDs and 1000s more in tourism, retail provided by CIDs and 1000s more in tourism, retail e.t.ce.t.c. . •• Construction of 3000 apartmentsConstruction of 3000 apartments•• Hosted 509 events in 2007 aloneHosted 509 events in 2007 alone

Aarhus Economic Development StrategyAarhus Economic Development Strategy

‘‘Growth in Aarhus IVGrowth in Aarhus IV’’

““We are focusing on maintaining the growth that is the basis for We are focusing on maintaining the growth that is the basis for the citythe city’’s s prosperity and welfare, not least in a period characterised by hprosperity and welfare, not least in a period characterised by headwinds in eadwinds in the financial markets in the entire Western worldthe financial markets in the entire Western world””

-- Nicolai Nicolai WammenWammen, Mayor, Mayor

Key ObjectivesKey Objectives

••75 000 more inhabitants75 000 more inhabitants••20 000 new homes20 000 new homes••50 000 more jobs 50 000 more jobs ••10 000 more study places. 10 000 more study places. ••CarbonCarbon--neutral by 2030.neutral by 2030.

••20 year time span20 year time span

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Green urban development: The Wind Capital of the World

•‘Environmental Action Plan’

•It is holistic – all plans and policies in the city adhere to it

•Aarhus has the ambition to become carbon-neutral by 2030.

•Aarhus has mapped its CO2 emissions and is now looking at all areas where emissions can be reduced.

•The globally leading wind turbine manufacturer,Vestas, is building the world’s biggest and most advanced R&D department for wind energy in Aarhus.

•The high concentration highly educated graduates as well as the city’s popularity are important factors when it comes to recruiting the right employees.

•‘Our ambition is that Aarhus will become a Vestascentre’ - Peter Wenzel Kruse, Vice President of Vestas’s Communications Department

Aarhus Economic Development StrategyAarhus Economic Development Strategy

Transformation Of NanjingTransformation Of Nanjing

Former capital city with cultural Former capital city with cultural endowment and universities.endowment and universities.

n the 1950s, the Communist Partyn the 1950s, the Communist Partyof China invested heavily in Nanjing.of China invested heavily in Nanjing.

Building a series of stateBuilding a series of state--owned owned heavy industries, heavy industries, as part of the as part of the national plan of national plan of rapid industrialisationrapid industrialisation..

Leaders of Nanjing were overenthusiastic in building a Leaders of Nanjing were overenthusiastic in building a ““worldworld--classclass”” industrial city.industrial city.

Many disastrous mistakes made during the development e.g. Many disastrous mistakes made during the development e.g. spending hundreds of millions of Yuan to mine for nonspending hundreds of millions of Yuan to mine for non--existent existent coal, resulting in the coal, resulting in the negative economic growth in the late 1960s.negative economic growth in the late 1960s.

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Transformation Of NanjingTransformation Of Nanjing

In the 1990s, China's In the 1990s, China's marketisationmarketisationreform quickened.reform quickened.FDI became an important part of FDI became an important part of urban industrial development. urban industrial development. Nanjing university and cultural role was reNanjing university and cultural role was re--prioritisedprioritisedNanjingNanjing’’s Government adopted a s Government adopted a programme of programme of building industrial parks to attract external capital.building industrial parks to attract external capital.Four main development zones: Four main development zones: PukouPukou; ; XinshengweiXinshengwei Nanjing; Nanjing Nanjing; Nanjing chemical industrial park; chemical industrial park; JiangningJiangning. . 2001: Policy to 2001: Policy to 'reduce secondary industry and develop tertiary industry.'reduce secondary industry and develop tertiary industry.’’By 2007, the vast majority of industrial land in the old city haBy 2007, the vast majority of industrial land in the old city had moved to d moved to the development zones outside the city wall.the development zones outside the city wall.

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Local Development and Competitiveness: Global Perspectives · Quality of life, place, services iv....

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