The 21st Century City: Urban Opportunities and

Challenges in a Global Context

Public Policy & Urban Affairs G6201

Seminar 1

“What Makes a City a City”

Professor Barry BluestoneProfessor Paul Grogan

Northeastern University

What Makes Cities Special?

• Density

• Diversity

• Positive Externalities

• Negative Externalities

• Love/Hate Relationship with Central Cities

• Love/Hate Relationship with Suburbs

Basic Social Functions of Urban Areas

• Large-scale production of goods and services

• Technical and social innovation

• Provide a desirable residential environment

• Provide a social support system for residents

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities

(Brookings, 1982)

Large Scale Production of Goods and Services

• Maintain and generate export (economic base) activities

• Maintain and generate production for local use

• Provide employment and earnings to residents and others in

the region

• Maintain, improve, and replace stock of non-residential

structures (i.e. industrial, commercial, & public buildings)

• Maintain a labor pool of varying skills and specializations• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities

(Brookings, 1982)

Technical and Social Innovation

• Stimulate innovations leading to higher productivity

• Provide means for communications

• Provide higher educational programs

• Provide households with opportunities for upward mobility

• Provide centralized facilities for face-to-face contact

• Provide opportunities for employment, education, and exercise of

leadership for groups subjected to social or economic discrimination

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities (Brookings, 1982)

Residential Environment

• Maintain, improve, and replace stock of residential structures

• Provide neighborhood amenities: attractive appearance,

safety, freedom from excessive noise, and social interactions

• Provide retailing facilities for residents

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities (Brookings, 1982)

Social Support System

• Provide educational programs for children

• Provide cultural, recreational, religious, and entertainment

services and facilities

• Provide health care services and facilities

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities (Brookings, 1982)

Urban Governance

• Provide an effective system of justice for settling conflicts and

disputes

• Maintain an efficient and equitable system of taxation to

support government functions

• Maintain government institutions for coping with changes in

local conditions

• Facilitate citizens’ participation in local government decisions

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities (Brookings, 1982)

Supporting Functions

• Provide public order and personal security• Provide and maintain transportation systems• Provide a system for collecting capital to finance consumer,

business, government, and other activities• Provide and distribute energy resources required for other

activities• Maintain, improve, and replace physical infrastructure• Dispose of wastes and protect the environment

• Source: Bradbury, Downs, and Small, Urban Decline and the Future of American Cities (Brookings, 1982)

Key Urban Issues – Economic Prosperity

• Context of Urban Change - Macroeconomic, Technological, and Demographic

• Uneven Growth of Metro Areas

• Increased Income Inequality among Metro Areas

• Changing conditions of Inner City neighborhoods

• Source: Wyly, Glickman, and Lahr, “A Top 10 List of Things to Know about American Cities,” Cityscape, Vol. 3, No. 3, 1998

The Changing Fortunes ofMetro Areas

Metro Area Median Family Income 1970 (in $2005)$6

3,92

7

$63,

741

$62,

592

$62,

496

$59,

739

$59,

021

$58,

978

$58,

782

$55,

072

$54,

716

$54,

599

$52,

566

$51,

853

$51,

741

$50,

751

$47,

590

$45,

350

$44,

871

$44,

632

$41,

162

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

Metro Area Median Family Income 2005 ($2005)

$79,

676

$76,

104

$76,

093

$67,

870

$67,

419

$67,

419

$66,

221

$66,

007

$65,

739

$63,

484

$63,

052

$61,

974

$60,

345

$59,

950

$58,

319

$56,

706

$56,

622

$56,

029

$55,

855

$49,

722

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000

Median Family Income 2005 Central Cities

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$73,180

$46,888

$28,984

Source: U.S. Census Bureau, SOCDS Data Set

Median Family Income 2005Suburbs

$40,000

$45,000

$50,000

$55,000

$60,000

$65,000

$70,000

$75,000

$80,000

$85,000$81,230

$65,397

$59,235

Ratio of Suburban/Central City Median Family Income 2005

1.021.08 1.09 1.09 1.09

1.17 1.20 1.23 1.271.37 1.41 1.41

1.51 1.541.65 1.70 1.74

1.881.94

2.63

0.00

0.50

1.00

1.50

2.00

2.50

3.00

Raleigh

Austin

Jack

sonv

ille

San F

ranc

isco

Portla

nd

Phoen

ix

Tucso

n

Los A

ngele

s

Salt L

ake

City

New Y

ork

Chicag

o

Tacom

a

Atlant

a

Bosto

n

St. Lo

uis

Buffa

lo

Milw

auke

e

Detro

it

Newar

k

Hartfo

rd

Percent Change in Median Family Income ($2005 Dollars) Central Cities (1969-2005)

-50.0%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

40.0%

Percent Change in Median Family Income ($2005 Dollars) Suburbs (1969-2005)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Austin

Raleigh

Jack

sonv

ille

Phoen

ix

Bosto

n

Hartfo

rd

New Y

ork

San F

ranc

isco

Atlant

a

Tucso

n

Milw

auke

e

Tacom

a

Portla

nd

St. Lo

uis

Salt L

ake

City

Chicag

o

Buffa

lo

Los A

ngele

s

Detro

it

Newar

k

Median Family Income 1969 vs. 2005 ($2005 Dollars) Central Cities

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

San F

ranc

isco

Raleigh

Austin

Portla

nd

Jack

sonv

ille

New Y

ork

Bosto

n

Tacom

a

Phoen

ix

Los A

ngele

s

Chicag

o

Salt L

ake

City

Atlant

a

Tucso

n

St. Lo

uis

Milw

auke

e

Newar

k

Detro

it

Buffa

lo

Hartfo

rd

1969

2005

Median Family Income 1969 vs. 2005 ($2005 Dollars) Suburbs

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

New Y

ork

Hartfo

rd

San F

ranc

isco

Bosto

n

Milw

auke

e

Chicag

o

Austin

Detro

it

Tacom

a

Newar

k

Raleigh

Atlant

a

Jack

sonv

ille

St. Lo

uis

Buffa

lo

Los A

ngele

s

Portla

nd

Phoen

ix

Tucso

n

Salt L

ake

City

1969

2005

Metro Area Median Family Income vs. Cost of Living (4-Person Family) 2005

1.51 1.511.49

1.481.46 1.46 1.46 1.45

1.391.38

1.361.35 1.34 1.34

1.321.30

1.17

1.14 1.141.11

1.00

1.10

1.20

1.30

1.40

1.50

1.60

Hartfo

rd

Milw

auke

e

Tacom

a

Detro

it

Salt L

ake

City

Chicag

o

Austin

Raleigh

Jack

sonv

ille

Phoen

ix

St. Lo

uis

Atlant

a

Portla

nd

San F

ranc

isco

Tucso

n

Newar

k

Los A

ngele

s

Buffa

lo

Bosto

n

New Y

ork

Key Urban Issues

• Foreign Immigration

• Decentralization of Metro Areas

• Urban Flight/Interregional Migration

• Social Polarization within cities

• Land Use & Environmental Sustainability

• Transportation & Infrastructure

• Urban Education

• Crime and Neighborhood Security

• Housing Affordability

• Fiscal Condition

• Civic Engagement

Key Questions

• Who has Competitive Advantage (individuals, firms, areas)?

• Why are some cities/metro areas more successful than others in attracting industry and people?

• Saving Cities vs. Saving People

• Who has access to resources; who doesn’t; and why?

– Assets and income flows

– Political Power and Influence: Elites, Regimes, Pluralism

• Constant battle over competitive advantage: Use of market forces and political institutions to gain competitive advantage

Market Forces vs. Institutional Factors

• Market Forces vs. Institutional Factors

– Market Forces: technology, individual preferences,

– Institutional Factors: public policy (federal, state, local)

– Exit vs. voice

– Mobile vs. immobile capital

• Positive and Negative Externalities of market forces

• Intended and Unintended Consequences of Public Policy

Key Actors/Anchor Institutions

• Government Officials

• Business Leaders

• Union Leaders

• Community/Neighborhood Advocates

• University Officials

• Local Foundations