Key Challenges for European Cities: Achieving Competitiveness, Cohesion and SustainabilityAuthor(s): Michael ParkinsonSource: Area, Vol. 33, No. 1 (Mar., 2001), pp. 78-80Published by: Wiley on behalf of The Royal Geographical Society (with the Institute of BritishGeographers)Stable URL: http://www.jstor.org/stable/20004127 .

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78 Observations

Key challenges for European cities: achieving

competitiveness, cohesion and sustainability

Michael Parkinson European Institute for Urban Affairs, Liverpool John Moores University, Liverpool, LI 9AT

Email: M.H.Parkinsonglivjm.ac.uk

This manuscript was received 18 October 2000

The changing roles of European cities

In the last decade there has been a transformation in the perceptions of the role cities play within Europe.

They are now high on the European agenda for a variety of reasons:

* traditionally cities have been seen in their respec tive national economic hierarchies. Increasingly they are seen in a wider European economic context at least;

* at the same time as there has been growing economic competition between European cities, there has also been a rapid growth in the devel opment of networks between them designed to promote trading links, exchange good practice and promote the interests of cities at a European level;

* there has been growing awareness of the contri bution and potential of cities to Europe's econ omic competitiveness. Cities are increasingly seen as economic assets, not liabilities, which need to be exploited not only at a national but also at a European level;

* but there has also been growing recognition of the double-edged character of much economic change in cities during this period. The search for economic growth has not always led to social equity-instead it has often contributed to increased social exclusion.

The result is that European cities present a complex face. Prosperity, energy, creativity and innovation are juxtaposed with poverty, exclusion and deteriorating neighbourhoods. The concentration of economic, physical and intellectual resources makes many cities centres of prosperity, creativity, culture, com

munication and innovation-the dynamos of the

European economy. Some of Europe's larger cities play important roles as the command and control centres of a rapidly developing global economy. But, at the same time, many are experiencing declining economic competitiveness, growing social exclusion and physical and environmental deterioration making them a drain on Europe's potential economic performance and its social stability. Such problems are growing in rich as well as poor cities, in expand ing as well as in declining cities. The growth in social exclusion is intimately connected to, and partly caused by, the search for economic competitiveness. But at the same time the growth in social exclusion is limiting the potential economic competitiveness of

Europe's cities and regions.

Differences and similarities between cities

Urban Europe remains enormously diverse. There is no single model of a European city and the chal lenges are not the same in every city. Important differences in their economic structure and func tions, social composition, size and geographical lo cation shape the challenges cities face. The problems of global cities such as London or Paris are not those of medium-sized cities. Declining large industrial cities with exhausted manufacturing economies, less skilled work forces and substantial immigrant com

munities face different dilemmas from fast-growing cities based upon high tech industries. Cities in the periphery face different economic, social and environmental challenges than those at the centre of Europe. Equally, national differences in traditions and cultures, economic performance, institutional arrangements and government policy have an important impact upon cities.

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Observations 79

Nevertheless, despite the differences between them, cities are affected by common trends and face common challenges. These challenges are caused by a number of structural changes which are often beyond their control, including:

* economic globalization-with power going upwards from the nation state and the loss of local control;

* economic and technological restructuring which is creating divided labour markets;

* competition between cities, regions and nations as well as firms-which creates winners and losers within as well as between cities; and

* the restructuring of welfare states with the loss of support for already vulnerable individuals, communities and areas.

In the face of these forces, cities need to develop new, more strategic models of decision-making

which will increase their economic competitiveness but at the same time help reduce social exclusion. Cities need to do this whether they are large or small, growing or declining economically, and at the core or periphery of the European territory. And the challenge confronts decision-makers at all govern

ment levels-European, national, regional and local-and in all three sectors-government, private sector and civil society. In the next decade cities will face growing challenges but increasing financial pressures in a more complex, fragmented, insti tutional environment. To deal with them, cities will need to become more strategic, more creative, and

more innovative in their ways of working. And to do this, increasingly they will need to work within strategic partnerships.

The roots of competitiveness

But what makes a city more or less successful in responding to economic and social changes?

The evidence across Europe is that six factors are crucial. The successful, competitive city will have more rather than fewer of the following characteristics:

1 economic diversity both in manufacturing as well as the service sector, especially in the high value added sector;

2 a supply of skilled labour to operate in the knowledge-based industries which give cities a competitive edge;

3 good linkages and networks between the sup pliers and consumers of that skilled labour in the universities, research institutions, government and the private sector;

4 the quality of environment-social, cultural as well as physical-which will allow a city to attract and retain the potentially mobile workforce needed to operate modern industries;

5 good communications, including not only physical communication such as airports, highways, rail and information technology, but also a political culture of openness and internationalization.

Finally, successful cities have:

6 the strategic capacity to mobilize the social, cultural and political resources from the public, private and community sectors to create and implement a long-term economic development strategy for the city.

Where stands London?

Where does London stand in this broader picture? It is different from many other European cities as the

London Futures group have observed.

* London is both central to Europe and a mega-city. * London is Europe's pre-eminent global city. It is

Europe's leading city as a location for new 'global firms', financial markets and media, marketing and advertising services.

* London is a 'network city' serving as Europe's largest hub for international telecommunications and air travel, which is being strengthened by Europe's growth and development as a technology-based 'knowledge economy'.

It has been argued that these factors have made London one of Europe's richest but most divided cities, presenting a more complex and difficult chal lenge to achieve sustainable development. How well is it doing? The recent London Study (Association of

London Government 1998) identified the key trends facing the city as:

* the pursuit of ecologically sustainable develop ment;

* globalization of industrial competition and flows of capital;

* the growth of new sources of wealth and employment;

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80 Observations

* the rise of social exclusion; * the rise of a much more ethnically diverse city; * the feminization of the London workforce; and * the threat of a decline in identification with the city

and a flight to the suburbs by the affluent.

In terms of its current conditions the report found:

* large divisions between the majority of citizens who are in work and included in the life of the city and the significant minority who suffer multiple disadvantages and are at risk of marginalization;

* a divided city, with wealth and poverty cheek by jowl;

* particular groups at risk of social exclusion. London's poorest districts had the worst scores for health and mortality indicators of any European city;

* a city facing major environmental problems; and * a city lacking the right image to help it attract and

retain professionals in the inner city.

The report argued that the city needed to start on the path of sustainable development and must follow the e-cubed model of sustainable development: E for a protected economy, E for a protected environment and E for social equity. Essentially this meant it must:

* live within the capacity of the environment to provide the city with energy;

* maintain an economy that is innovative, competitive and productive; and

* achieve development that does not erode social cohesion and undermine families and communities.

But the theme, although easy to endorse, also throws up key dilemmas. As the leading London politician Lord Harris has pointed out (Association of London Government 1998, 40) it will involve difficult choices for Londoners, including the need to:

* respect the needs of existing residents but also cater for a large population of tourists;

* develop dynamic new markets but also enhance community and family life;

* have modern infrastructure but also have clean air; * control the motor car but also sustain economic

activity and not alienate residents, commuters and employers;

* build a consensus across the city but also embrace cultural and political diversity; and

* eliminate social exclusion but also limit taxes and welfare spending.

The remainder of the papers in this set look in detail at how London is addressing the challenges that this paper has identified.

Reference

Association of London Government 1998 The London study: the future of the city Association of London

Government, London

London's housing

Chris Hamnett Department of Geography, King's College London, Strand, London WC2R 2LS

Email: chris.hamnett@kcl.ac.uk

This manuscript was received 18 October 2000

The idea of sustainability and sustainable develop ment are not simply concerned with issues regarding the physical environment, important though these are. There are also important issues regarding the social sustainability of cities. By this I mean the ability

of the urban population to live and reproduce itself in a reasonably safe, attractive and healthy environ

ment which offers opportunities for employment, education, housing, cultural life, entertainment and social interaction. In this brief paper I want to focus

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