INTA 2006, Belfast' City Competitiveness: Investment, Diversity, Catalysts, Strategy

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INTA 2006, Belfast.City CompetitivenessInvestm
ent, Diversity, Catalysts, Strategy

• Greg ClarkCity and Regional Development Advisor

10 Oct 2006
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W O R L D C I T Y
Big pan pic of London
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(No Transcript)
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Propositions

• New global era requires a renewed focus on city
  investment
• Improved City investment requires dedicated tools
  and public/private endeavour development tools
  and agencies are essential.
• City Development Agencies are a key tool in
  fostering financial innovation and global events
  are a catalyst for investment.

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Take a long term view.

• 6 Long Term Drivers
• Economic Internationalisation.
• Human mobility and demographics.
• Environmental change.
• Technology development.
• Cultural endowment.
• Continental governance.
• How cities respond matters.

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Long term success of cities.

• 10,000 years of urbanisation.
• 2,000 years of European Cities.
• Re-population of cities is a long term pattern
  source is immigrants.
• Diversity as competitive advantage facilitates
  trade, innovation, enterprise, creativity.
  Diversity and cities go together.
• Technology and Creativity fusion and the global
  market.
• Open-ness of cities really matters. But what is
  it?

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Cities need investment

• Transition to knowledge led economy
• Interaction of place with economy
• What businesses and people need
• Agglomeration, proximity, quality of place,
  co-ordination success
• Economic integration
• Continental, global,. Competition and
  Collaboration
• Environmental Imperatives. Completing the
  clean-up and greening the city economy.
• Social inclusion. New forms of intermediation.
• Policy Innovation and delivery.
• speed, authority, governance.
• Space, flows, economic units. Metropolitanisation,
  cities, and regions.

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Productivity, Place, and Investment
1. Indigenous growth 2. Primarily supply side 3.
Market failures in
New firms can create demand for skilled labour
Investment in physical capital increases firms
innovative capacity
4. And drivers of growth
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Economic Performance of Cities A Broader
Framework
Economic performance
Feedback effects
Productivity
Use of resources (labour land)
Population
Key drivers
Innovation creativity
Business ownership management
Human capital
Connectivity
Industrial structure
Business environment investment
Educational research base
Land/physical infrastructure
Social/cultural infrastructure quality of life
Governance structure
Pre-conditions
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Global patterns change is rapid

• Milan Metropolitan Region. 3 to 10 in 20.
• Berlin Missed Opportunity.
• Barcelona the Mediterranean Renaissance.
• Stuttgart and Turin.
• Miami. Capital of new America.
• Seoul. 8 to 13 in 10 years.
• Hong Kong back to the top.
• Shanghai the new world city.
• Ireland. The Celtic Tiger.
• Finland. Top of the League. Poland? Korea? Chile?
  
• Long term bets Dublin? Cambridge? Canberra?
• Missed Opportunities and Opportunity Costs.

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City
Cities and Mobility
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The World City-Regional Economy.
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Diversity
Cities and Diversity
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Some metro-regional approachesdifferent
models and drivers

• Athens National leadership.
• Helsinki Capital city region.
• Melbourne State leadership.
• Seattle Metropolitan cooperation.
• Frankfurt Business coalition.
• Phoenix Business/Public coalition.
• Lyon Inter-municipal.
• Toronto Amalgamation and Regional
  Co- operation.
• Miami Two tier government.
• Milan Provincial renaissance.
• Berlin Lost opportunity.

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Why are development tools competitive advantage
to cities?

• Pace of response to investors/developers.
• Scale of intervention possible. Multiple and
  simultaneous.
• Reputation and credibility of city negotiators.
• Costs and risk sharing opportunities.
• Value and benefit capture opportunities.
• Unlock under-used assets.
• Increase efficiency in land, property, and local
  investment markets.
• Overcome co-ordination failures arising from
  fragmented jurisdiction.
• But these advantages dont exist in isolation
  from wider context, they are part of it.

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Role of OECD

• Inter-governmental organisation.
• Economics led.
• Peer Review and Policy Innovation.
• Policy recommendations.
• Transferable principles and learning models.

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The OECD LEED Programme an inter-governmental
approach to local economic development.

• 23 years of experience working to
• to improve the quality of public policy
• to promote the exchange of experience and the
  diffusion of innovation
• to provide assistance for member and non-member
  countries
• LEED Partners Club
• 4 Fora including Cities and Regions.

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Delivering City and Regional Economic Development

• A strong international repertoire of local
  economic development models.
• A holistic process dependent on all levels of
  government.
• Need for learning, and not copying.

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Themes of the OECD LEED FCR work

• Economic Strategies for Cities and Regions.
• Development Agencies.
• Financing Local Development.
• Hosting global events as a catalyst for local
  development.
• Research, Seminars, Reviews, Publications.

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1. OECD LEED FCR Economic strategies for cities
and regions.

• Understand the big drivers and interaction with
  place.
• Key role of leadership.
• Imagining the future.
• Identifying the unique local assets.
• Investment strategies for cities.
• Population strategies for cities?
• Asset management strategies for cities.
• Implementation planning.

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2. OECD FCR Development Agencies Reviews.

• A global phenomenon.
• 1,000 development agencies in Europe and 2,000 in
  North America
• Essentially special purpose vehicles
• Most fulfil simultaneous rationales.

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2. OECD Reviews of Development Agencies No
single model a wide variety

• Different starting points
• Europe, North America, Asia, Latin America,
• Different constitutional contexts.
• Different freedoms and flexibilities.
• Comprehensive, niche, sectoral development
  agencies.
• Defined territories.
• Public/Public, Public/Private, Private/Private.
• Governments, Business, Trade Unions, Community.
• New partners emerging Universities, Airports,
  Sports Clubs, Utilities, Major Landowners
• Leads to different missions, objectives, and
  priorities.
• Need for learning, and not copying.
• Governance roles?
• Instrumentation roles?
• Joint Venture roles?

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OECD Reviews of Development AgenciesRationales
for Development Corporations Value Added.

• Why set up or re-engineer a Development
  Corporation?
• Speed, Scale, Business Facing, Focus, Range of
  partners, Efficiencies, Innovation,
  Sustainability.
• How can a dev corp do more than a city gov
  department on its own?
• Value added principles
• Crisis response.
• Organising vehicle for implementation.
• Business like, investor facing.
• Leverage external investment.
• Address a special area or territory.
• Independent identity, or pooled identity.
• Outward facing and promotional.
• Flexible systems and procedures.
• Unencumbered by other missions.
• Particular legal or fiscal status.
• Able to make transparent decisions about
  resource allocations.
• Share risks and costs.

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OECD Review of Local Development
FinanceFinancing local development 10
principles.Launched at Global City 2 Lyon May
2006.

• Smart finance for smart cities getting the
  fiscal relationships with higher tiers of
  Government right
• Promote active private sector leadership in city
  investment
• Metropolitan finance for metropolitan amenities
• Sharing the benefits of growth locally
• Flexibility in public funding to enable private
  co-investment
• A new approach to public assets
• Financial innovation in public and private
  sectors
• Long term market building by the private sector
• Focus on the quality of the propositions not on
  the supply of finance
• Build capable specialist intermediaries

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Hosting Global EventsRecent experiences.

• Review of success factors from
• Cultural capitals, Arts Festivals, G8 and World
  Summits, Creative Industry Events, Major Sports
  events, Olympics.
• OECD Reviews of event led city efforts
• Mexico, Seoul, Turin, Sevilla, Athens, Joburg,
  Berlin, Glasgow.
• Londons event strategy and Olympic bid.
• World Creative Forum/London Design Festival,
  London Fashion Week, Olympic Bid, new National
  Stadium, new Convention Centre, G8 AND EU
  Presidencies. Trade strategy.

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London 1851, Crystal Palace The First Worlds
Fair The Great Exhibition
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Hosting Major Events.

• Why do nations and cities host major events?
• Do people want to visit any more?
• Can they make money?
• A boost for the visitor economy?
• A moment of exposure media?
• New investment, infrastructure, and facilities?
• A new identity for the city?
• New rules of engagement?
• Local benefits for people/firms/communities?
• National prestige and profile?
• Can nations and cities re-position themselves?
• What are the nations and citys goals?
• How does the event align with other priorities?

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Different Skill Sets

• Bidding
• Marketing, Public Affairs.
• Organising support within the city and country.
• Hosting/staging
• Planning for the event.
• Complex project management and control
• Logistics.
• Destination management.
• One main client (FIFA, IOC, etc)
• Securing impacts/benefits
• Planning for after the event.
• Marketing.
• Investment facilitation.
• Leveraging media exposure.
• Multiple clients and prospects.

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What are the strategic priorities?

• Accelerate existing plans?
• Facilities?
• Supply chain?
• Temporary employment?
• Image?
• Foreign Investment?
• Visitor economy?
• Higher education expansion?
• Trade, Enterprise Innovation?
• New purpose for disused land?
• Another event?

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4. OECD Reviews of Hosting Global
Events. Underlying value of hosting global
events.

• Unify the country around a purpose.
• Nation building and international development.
• High visibility, prestige, and status.
• Real deadlines avert avoidance.
• Makes local investment a national priority.
• Accelerates pace of change and delivery of goals.
• Collaboration with other places, that leads on..
• Changes rules of engagement.

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Conclusion

• Demand for Global Events has not gone away
• New drivers, new and diverse niches, new
  strategies.
• Successful events dont just happen they are
  built from bottom up.
• Some events succeed only in one realm. Great
  events succeed in many.
• Benefits of events fall widely and in different
  spheres and time frames.
• Cities can win global events, but making them a
  success requires robust action and commitment
  now.

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OECD LEED Forum of Cities and Regions

• LEED Partners Club.
• LEED Events and Publications.
• LEED Reviews.