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Competitive cities for jobs and growth. What, who and how.

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Остин Килрой и Дмитрий Сиваев / Austin Kilroy & Dmitry Sivaev, Competitive Cities World Bank Grou
30 июня, 12.00 / 30th of June, 12.00 am
Зал "Баженов" / "Bazhenov" hall
Сессия: "Презентация исследований Moscow Urban Forum" / Session: Research presentations Moscow Urban Forum

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Competitive cities for jobs and growth. What, who and how.

  1. 1. 1 #CompetitiveCities
  2. 2. 2 • Will tell a story based on evidence of ‘what works’: – Data on 750 cities worldwide; – 6 structured case studies of high- growing cities; – Secondary literature; – Firm-level econometrics; – Lots of conversations. ‘Market systems’ in a city context 2
  3. 3. 3 How have other cities created jobs and growth? What should be the top priorities for my city? How do I get it done?
  4. 4. 4 So we decided to find a way to answer these questions In-depth lit review and consultations Database of 750 Cities 6 in-depth case studies Econometric analysis in two countries
  5. 5. 5 Any manner of city can be competitive Meknes Bucaramanga Coimbatore Gaziantep OnitshaSaltillo New York Tokyo London And while all cities are unique, some principles of promoting competitiveness apply across the board
  6. 6. 6 • And How does it get done? A “COMPETITIVE CITY” facilitates firms and industries to grow jobs, productivity and incomes over time • What do successful cities do? • Who does it? • We are looking at private sector performance • We do not distinguish informal businesses • Data is imperfect • There are no silver bullets and all circumstances are unique
  7. 7. 7 An unexpected story of ONE city
  8. 8. WHAT WOULD YOU DO…..? • Land is dry and ill-suited for agriculture. • Not a port city; 210km from a port. • Low skilled population. • No high-tech clusters.
  9. 9. Gaziantep (Turkey), 2003
  10. 10. Gaziantep (Turkey), 2014 • Light-manufacturing firms export to 175 countries around the globe. • Exports increased tenfold from $620 million in 2002 to $6.2 billion in 2013. • Ranked #9 globally for economic growth in the decade 1999 to 2009. • Recorded an average of 6.3 percent in annual GDP growth from 2005-2012. • 3.6 percent in annual employment growth.
  11. 11. 12 1. WHAT CAN BE DONE
  12. 12. 13 Combining economy-wide with sector-specific interventions ∆ Firm growth; ∆ Investor attraction; ∆ New start-ups. City wedge
  13. 13. 14 Successful cities combined: a) industry-specific (sector/value chain) interventions, with b) economy-wide interventions. This was not an either/or choice… 14
  14. 14. Source: Analysis using Oxford Economics city-level data for 750 cities worldwide, 2005-2012 Tradable goods & services drive growth in competitive cities 0 1 2 3 4 5 6 7 Top 10 percent of cities Other 90 percent of cities Tradable goods & services Non-tradable goods & services The reasons: • Expand the local economic pie; • Help increase productivity through competition. Annualemploymentgrowth,2005-2012
  15. 15. 16 2. WHO DOES IT
  16. 16. 17 Who: The city wedge i. Growth Coalitions: collaboration with stakeholders; ii. Mayor’s Wedge: internal scope and capacity; iii. Intergovernmental relations: external leverage.
  17. 17. 18 Who does it?
  18. 18. 19 3. HOW WILL IT BE DONE
  19. 19. City economic development strategies in practice “There is a strategy on paper, but it’s not evident to us. What is evident is the various directorates with their own key focus areas– but that’s not a combined strategy.” -- Executive Director of city Chamber of Commerce, South Africa “In the Metro growth strategy there are two and a half pages of priority projects. We need 2-3 focused areas, rather than a wish list.” -- LED professional, South Africa “If you ask people what is their number one priority, they will not say it’s housing; they will not say it’s electricity; they will say give me dignity by giving me a job. Job creation should be our number one driver. If I get a job then everything else falls into place.” — CFO of eThekwini, South Africa “We thought we had a problem with our industrial development strategy, and instead we realized the biggest issues were with our management system.” --Minister of Planning, Central American city
  20. 20. While few cities are like Gaziantep, there are more Bucaramanga, Colombia Changsha, China
  21. 21. These findings apply to all sorts of cities What How Who NEW YORK PITTSBURGH MANCHESTER LONDON BALTIMORE MEXICO CITY
  22. 22. 23 “We tend to keep people busy, rather than to change people’s lives”— LED professional, South Africa •No magic bullets (ICC? Monument? One-stop shop?)– has to be embedded in a growth strategy. Summing up 4 broad levers to increase competitiveness Focus on comparative advantage: especially tradable sectors Horizontal (city-wide) and vertical (sector specific) interventions What “Economic development oriented” mindset – growth as an overarching goal. Public-private “growth coalitions” Delegation of powers to cities, with the right capacity Keen attention to implementation How Who
  23. 23. 24 What is of value to you? WHAT WHO HOW Analytics: • Benchmarking of city performance versus competitors, • Diagnostics of key enabling conditions: infrastructure, • In-depth diagnostics of selected priority industries and value chains Understanding the leverage: Analysis of the leverage of national local and regional governments. Understanding what powers mayors have and how they can expand their influence. Public Private Dialog: Helping cities shape conversation with the private sector, to engage private actors in identifying strategic priorities and implementing competitiveness reforms Training: Hands on training courses for city officials, covering key concepts city competitiveness through simulation exercises and case studies. Improving municipal management: Helping set up economic development units and ensuring cross departmental coordination to maximize effectiveness of local governments.
  24. 24. 25 Austin Kilroy & Dmitry Sivaev Competitive Cities World Bank Group akilroy@worldbank.org & dsivaev@worldbank.org
  25. 25. 26 Types of economies and their needs change as cities develop… … and these changes should reflect those needs

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