Session Name: Economic 3 | Cities and Economy - How real is City Competitiveness?

Date . October 8, 2012

Time 4.00-5.30 pm

‘A Framework for a Comparative Analysis of the Competitiveness of Asian and Latin American Cities’

Brian H Roberts Emeritus Professor

Land Equity International, Australiaand

Marco KamiyaDirección de Políticas Públicas y Competitividad

CAF- Development Bank of Latin America

Sixth Urban Research and Knowledge Symposium 2012

Barcelona, Spain | October 8-10, 2012

Background

• The Asian Development Bank (ADB) and the Corporación Andina de Fomento (CAF) Development Bank of Latin America are collaborating on a wide ranging research project to develop a better understanding of factors that underpin and drive the competitiveness and development of cities in Asia and Latin America.

• The banks would like to gain knowledge from this research to improve the approaches to their lending program activities and project so these are more effectively designed and targeted to support the sustainable development of cities in the two regions.

• The research examines the process of birth, growth and consolidation of regional competitive cities with and outcome focused on learning how cities can develop better integrated public policies to catalyze private sector development for business in support of industry cluster development in the two regions

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Research Question(s)

• How does competitiveness in cities manifest itself, grow and develop?

• How is policy design to enhance city competiveness conducted? • What are the institutional and economic governance arrangements

foster competiveness and sustainable economic development?• What are the main instruments existing for cluster development and

Small and Medium Enterprises (SMEs)? • How is strategic infrastructure planned in consonance with private

sector needs of urban economic development? • Last, but not least, how and where are social and environmental

policies applied to avoid social and environmental conflicts with respect to sustainable local economic development?

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Research Methodology

Review of City Competitiveness Studies• Global• Asian Countries• Latin American Countries

Economic Development of Asia and Latin America (ALA) Cities •Study Background, Purpose, Objectives•Urbanization and economic development in ALA •Drivers of Economic Development in ALA cities•Challenges of City Economic Development in ALA•Need for Enhancing City Competitiveness•Framework for Analysing Competitiveness of ALA cites City Case Studies:

• Bogotá: Colombia• Curitiba: Brazil• Dhaka: Bangladesh• Guayaquil: Ecuador • Lima: Peru• Ho Chi Minh City: Vietnam• Nanning: China• Seoul: Republic of Korea• Bangkok -HCMC Corridor

Analysis , Lessons Strategic Directions for ADB and CAF to Enhance the Competitiveness of Asian and Latin-American Cities

Scope of City Case Studies • Historic background and general information on the city and its economy

• Economic profile of the city's economy

• Institutional governance and business dynamics

• Analyze the holistic and sector competitiveness of economic drivers – A. Cost of Doing Business

– B. Dynamics of Local Economy

– C. Human Resources and Training

– D. Infrastructure

– E. Responsiveness of Government To Business Needs

– F. Quality of Life

• Analysis of adequacy of the strategic infrastructure supporting the city’s economy and its development

• Identify describe and analyze two key Industry clusters that are expected to play a key role in the development of the selected city’s economy

• key strategic initiatives to enhance the competitiveness of the city's economy

Policy Consequences

• Improved approaches to the design and implementation of ADB-CAF urban sector projects

• More sustainable approaches to planning for local economic development in cities

• More competitive and efficiently managed cities in both regions that will stimulate trade and exchanges between the two regions

• Enhanced cooperation and knowledge sharing between ADB-CAF and cities in both regions on urban sector economically sustainable development and management

Progress and Initial Findings

• Study Started in February 2012 and is expected to be completed December 2012, with finding and report presented to a joint meeting of ADB and CAF-Development Bank of Latin America in May 2013

• Draft case studies of four Latin American cities are completed. Initial indications show Latin American cities are ahead on quality of life indicators, lagging in business dynamics, and on a par with human capital and infrastructure development.

• Asian cities are much more export-orientated and growing above national economic growth rates. Latin American cities are moving into a post–industrialization phase of development and growing slower than the national economic growth rate.

• There is much stronger competition and city to city trading of goods and services occurring in Asian than Latin American cities

Latin America: preliminary Results

• Cities: Curitiba (Brazil), Bogota (Colombia), Lima (Peru), Guayaquil (Ecuador)

• Curitiba: Excellent public private coordination and a long history of planning and long term policies.

• Bogota: Relatively high institutional capacity in the public sector.• Lima: Fast growing city which should improve public to public

coordination and private sector involvement in policies.• Guayaquil: The governor was key to implement planning reforms.

In general competitiveness of cities except for Curitiba are driven by recent economic growth and not by a long term vision. Still the recent economic boom has allowed to strengthen public capacity and public sector growth setting the basis for improved urban planning and higher competitiveness.

Knowledge Gaps & Recommendation for Future Research

• Methodologies and indicators used to measure the competiveness of cities vary significantly at a global and national level

• Data on the economy of Asian cities is much more difficult to obtain than for Latin American cities

• Data and statistics on trade between cities is extremely difficult to obtain in the two regions

• Factors and drivers which shape the competiveness of cities vary significantly and the correlation between level of economic development and competitiveness is not well understood

• The role and importance of industry clusters as drivers of economic development is not well understood in the context of developing cities

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Questions