competitive cities: the challenge of inclusive growth

8/3/2019 Competitive Cities: the Challenge of Inclusive Growth

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2011-11-15 © Copyright, Enright, Scott & Associates, Ltd., 2011 1

Competitive Cities:The challenge of inclusive growth

Professor Michael J. Enright

University of Hong KongEnright, Scott & Associates

Hong Kong Institute for Economics and Business Strategy




City Competitiveness

• What is it?

– The ability of the city to generate a rising standard of living for the city’s

residents.

– The ability to compete successfully in a range of economic activities that

allows for economic advancement.

– The ability to contribute to regional and national development by providing

services and support to a hinterland or other cities.• Why is it important? Because cities are:

– Centers of population and opportunity

– Engines of development

– Markets for goods and services

– Service support centers

– Links to national and international markets

– Command, control, and coordination centers

– Public administration centers




Competitiveness in…

Industries

Activities




Competitiveness in…

Industries

Activities

Clusters



Competitiveness is systemic

5

Meso orClusterLevel

Micro orIndustry

Level

Firm Level

Meta orSupranational

Level

Macro orNational

Level

Competitiveness

2011-11-15 © Copyright, Enright, Scott & Associates, Ltd., 2011




No single level can make a nation, region, or city

competitive, any single level can make it uncompetitive

Competitive

Industries/

Activities

Industries/

Activities

Supranational Cluster FirmNational Industry


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City competitiveness assessments

Firm

Drivers

Industry

Drivers

Cluster

Drivers

National

Drivers

Supranational

Drivers

Low-tech

manufacturing

Mid-tech

manufacturing

High-techmanufacturing

Utilities

Public services

Financial services

Professionalservices

Manufacturing / ag

support services

Etc.



Leverage points for developing country cities

Basic Advanced

Urban planning Simple differentiation

Complex differentiation

Multi-centric

Spatial clustering

Transportation

Intra-city roads

Basic public transport

Links to hinterland

Integrated, multi-modal

systems

Transport hub developmentsGlobal, intercity connections

Communication Basic telephony

Internet

Broadband

Multi-media platforms

UtilitiesRunning water in someplaces

Variable electricity

Ubiquitous high quality utilities

Consistency, uninterrupted

Public servicesPolicing in some areas

Basic medical care

Policing in all areas

Advanced, varied medical care



Leverage points for developing country cities

Basic Advanced

Education, TrainingPrimarySecondary

Basic undifferentiated training

VocationalHigher education

Industry-specific training

Administration

Top-down

Bureaucratic

Non-transparentDay to day

Interactive

Professional

TransparentFuture-oriented

Business support

Tax breaks

Infrastructure support

Training support

Targeted infrastructure

Incubators

Cluster development

Streamlined regulation

LifestyleBasic necessities

Public safety

Amenities, Retail, Food and

Beverage, Entertainment

Mixed use complexes, districts

Competition for talent



Issue: Inefficient city structures

• Most cities in developing Asia were built in earlier times

– When life was very local – Without modern transportation systems

– Without sufficient planning

• The result is inefficient city structures

– Undifferentiated cities, Limited geographic specialization

– No high interaction city centers

– Chaotic transportation, Urban sprawl

• The solutions

– Redevelopment (China)

– New satellite cities (India)

– Brand new cities (Malaysia)

– Vertical development and “triage”

– Strong planning systems

• All this takes planning, execution, and finance



Issue: Transportation challenges

• Most cities in developing Asia have huge transportation challenges

– From the cities to the outside world

– Between centers within the city

– From outlying areas to city centers

– Within neighborhoods

• The results permeate the local economies

– Difficulty connecting to the rest of the world

– Difficulty supporting manufacturing and services

– Difficulty supporting agriculture and other primary production

• Solutions

–

New highways (penetrating city core) and roads – Mass transit systems

– New airport investment

– Focus on linking neighborhoods

• All this takes planning, execution, and finance



Issue: Inadequate housing(The Hong Kong and Singapore approaches)

• The Problem – Large influxes of refugees

– Substandard housing

– Marginal, dangerous living

– Impossible to provide public

services and utilities

• The Solution

– Large scale, high rise housing

provided by government

– Rental and sale depending on

income levels

• The Results – 40% of Hong Kong population in

public housing

– 80% of Singapore population in

publicly provided housing

– Two of the safest cities in theworld

– Two of the best organized in

terms of infrastructure

– Vast improvements in

productivity

12

Public housing was one of the most important steps that allowed

Hong Kong and Singapore to go from 3rd world to 1st world. All of

this took planning, execution, and finance.



Issue: Leveraging transportation for development

(Hongqiao Transport Hub in Shanghai)

• The Problem – No urban center for the

western part of Shanghai

– Limited transport linkageswith neighboring cities

– Limited long haul rail linkages – Limited logistics capacity in

western Shanghai

– Overcrowded airport, poorlinkages to downtown

– Inadequate affordablehousing, employment inwestern Shanghai

– Limited public services inwestern Shanghai

• The Solution – Hongqiao Area

Transportation Hub (air, highspeed rail, intercity rail,metro, bus routes, logistics

center) – Intensive surrounding

development (office, retail,commercial, residential,industrial, logistics)

• The new projects andsurrounding developmentwill decongest the city andallow Shanghai to enhanceits position as a leading city

13



ESA’s Hub Area Project

•

Context – China’s development

– Regional development

– Shanghai development

• Lessons from

– Airport –related development

– Intercity and local raildevelopment

– Polycentric cities

– Impacts of regional linkages

– Cluster-based development

– Industry-level competitivenessstudies

•

Assess potential for – High-end services

– Second-tier services

– Local services

– Logistics

– High-tech manufacturing – Mid and low-tech

manufacturing

– Creative and cultural industries

– High-end, affordable, relocation

housing – Utilities, amenities,

entertainment, green spaces,public spaces

14



Functional layout

15



Issue: Regional clusters and development

•

What are clusters? – Groups of firms in the same or

related industries whosedevelopment is interdependent

• What are the types of clusters?

– High technology agglomerations

– Low tech, labor intensiveindustries

– Fashion and creative industries

– Large scale manufacturingindustries

– Small scale craft industries – Business and financial services

– “Anti-cluster clusters”

•

Why are they important? – Economies develop through

clusters

– They leverage and build localskills and capabilities

– They foster interaction andcollaboration among firms

– They provide impetus anddirection for innovativeactivities

– They develop and attractresources

– They allow locations toconnect to the global economy

– They provide a useful unit forpolicy and public-privateinteraction




Clusters can be the subject (or object)

of development policies

• Overcoming specific market failures – Impacted information

– Managerial myopia

– Underprovision of public goods

–

Coordination failures• Through

– Cluster-specific information provision

– Cluster-specific education, training, infrastructure, services

– Cluster-specific research and technology programs

– Programs to foster linkages and coordinated action

– Investment promotion based on cluster dynamics

• Some of these approaches are not in the traditional multilateral

arsenal




Issue: Making urban development inclusive

• Serving different parts of thecommunity – Infrastructure

– Utilities, Public services

– Housing, Transportation

– Affordability and coverage issues

• Providing employmentopportunities

– Not just high-tech and modernservices

– Construction, Tourism

– Urban support services

– Transportation and logistics

– Microfinance and small businesspromotion

– Traditional businesses

• Improving public safety / health

– Safe public spaces, such ascommunity centers, retaillocations, schools

– Safe water and food throughsanitation and cold storagefacilities

– Waste management to reducedisease

– Preventative and traditionalmedical care

• Community-based managementand administration

– Land, Transport issues – Documentation issues

– Neighborhood-based services

– Ombudsman function




Questions

• How can traditional and new urban development paradigmsbe combined to promote development and prosperity?

• How can our traditional funding models be augmented to

fund a combined approach?

• What modalities and structures should be put in place to

leverage what we know about urban development and

competitiveness to deliver better outcomes for the region?

• How do we build inclusiveness into the fabric of urban

development in Asia?



Michael EnrightUniversity of Hong Kong

Enright, Scott & Associates

Hong Kong Institute for Economics and Business Strategy

Phone: 852-3101-8650

Fax: 852-3101-9635

E-mail: [email protected]

Thank you


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competitive cities: the challenge of inclusive growth

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