BASIC DIMENSIONS OF COMPETITIVENESS OF CITIES

Cities have been the engines of productivity and growth throughout history, and will be essential to the future growth and competitiveness of nations and regions. This is especially true at a time of massive and rapid urbanization in emerging markets; hence, the focus on the competitiveness of cities. Six global “megatrends” especially relevant to cities are identified: urbanization, demographics and the emerging middle class; rising inequality; sustainability; technological change; industrial clusters and global value chains; and governance. Led by urbanization, they condition the greater operating environment for cities around the world. It is up to cities to take advantage of these megatrends, as well as to mitigate negative forces such as rising inequality, pressure on natural resources and the environment, and a diminution of trust in public authorities. City competitiveness is defined here as the set of factors – policies, institutions, strategies and processes – that determines the level of a city’s sustainable productivity. Sustainability encompasses economic, environmental and social issues. Productivity is about the efficient use of available resources that drives economic growth. But productivity has to be sustainable – maintained beyond the short term, and in a way that reconciles economic, environmental and social goals.A four-part taxonomy of city competitiveness was developed, including institutions, policies and regulation of the business environment, “hard connectivity”, and “soft connectivity”. The objectives of this work are to encourage city leaders, policy-makers at local, regional, national and international levels, and academic and other experts to focus on competitiveness at the city level; and, to encourage a rich global dialogue on this issue and shine a light on creative and path-breaking initiatives that address the multiplicity of challenges facing today’s cities. The time is opportune for a much stronger focus on the competitiveness of cities. The aim is for the analytical framework and global survey of cities herein to be of use to city leaders and others who wish to contribute to city competitiveness. The cities reviewed are so different, yet many of their successes, failures and challenges have things in common. It is hoped that readers will take this report not as the final word, but as a point of departure to create new strategies and policies relevant to the realities and complexities of cities around the world.