Leading the Way is a column written by PricewaterhouseCoopers professional staff. It appears in the Business section of the Bangkok Post twice each month. The column provides specialised advice to corporate decision-makers in Thailand on global and local business trends.
This article appeared in the February 7, 2006 issue of the Bangkok Post
By Jan Sturesson
City leaders will be pleased that 60% of the world's population will be living in cities by 2030. However, emerging trends and challenges will force them to reinvent their cities to secure sustainable urban growth. Despite unique identities, geographic spread and differing economies, cities all over the world are being tested by the same mega trends. These trends create both opportunities and threats, so the strategic agenda of tomorrow is a unique interpretation of them, and their impact on cities. One such trend is globalisation. As the global economy is becoming truly integrated, there is a simultaneous global and local focus known as ''glocalisation''. This occurs when global companies and economies work in local competition, but within global structures.
A second trend is individualism, which is an increasingly important social trend. It impacts the dialogue between the city and its citizens. The third trend is merging, in which many areas of life merge together in new ways: work and leisure, culture and values, public and private sectors in public private partnerships. Acceleration, the fourth trend, is one in which speed is increasing in all areas of life, often driven by information and communications technology.
''High-tech'' and ''High-touch'', the fifth and sixth trends, acknowledge the relationship between life and technology. In the former, that technology has implications for the delivery of all existing and new services. In the latter, the hardware of technology must go together with the software of emotions, nostalgia, architecture and design.
Demographics, the seventh trend, recognises that the ageing population will have a major impact across the globe. The eighth trend, urbanisation, or ''metropolitansiation'', means that large cities have a growing influence on the economic health and prosperity of wider regions and, in some cases, nations.
The final trend influencing future city planning strategy is migration, which is increasing and thus presenting major challenges around social cohesion, integration and employment.
With the above trends in mind, a number of issues have to be taken into account when creating a strategic city plan for the future. The first challenge is for cities to take full advantage of their intellectual and social capital. By ensuring that the appropriate people, skills and capabilities are developed they will become competitive players in the international knowledge economy.
A second challenge for cities is to promote themselves as culture and leisure capitals. This type of campaign propelled Barcelona on to the world stage during the Barcelona Olympics. A strong city brand is a potent visibility, and therefore competition for international sporting or cultural events is intense.
In addition to creating a culturally rich centre, cities must also promote themselves as environmental capitals by providing clean, green and safe environments. Oslo's municipal plan emphasises the importance of maintaining its ''blue green'' distinctiveness arising from its proximity to both the ocean and the forest.
The development of a technological capital is a further challenge faced by cities of the future. They must be able to support the changing technological needs of their citizens. This includes basic needs such as transport, housing, water and energy, as well as new demands for effective communication, such as broadband and electronic networks.
A final challenge for cities of the future is their development as financial capitals. Growing demand on diminishing revenue bases need creative and flexible financial strategies, and increasing partnerships with the private sector.
Disasters including natural catastrophes, terrorism and epidemics have also become an important point on the strategic agenda for the future. Individual cities can even influence the financial performance of their nations. For example, the national economy of Canada shrunk by approximately 1% as a result of the Sars outbreak in Toronto.
Strong leadership, which is both highly consultative and directional, is required to manage all these trends and challenges. Values are a critical element of good leadership and developing accountability is key to engaging citizens. Disclosing targets and recording performance against them, creating collaborative forums for specific interest groups and arranging services around the needs of citizens, all contribute towards cities' positions as Corporate Social Responsibility (CSR) compliant administrations.
The above is the result of a year-long PricewaterhouseCoopers research project in which senior figures from over 40 cities around the world were interviewed. The full report, ''Cities of the Future: Global Competition, Local Leadership'', is available to download at www.pwc.com/government.
