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Learning from success: What fast growing cities in Europe and globally do

Discover the factors that contribute to fast-growing cities and how they drive local economic growth. Learn about successful implementation strategies in Changsha and Gaziantep, and explore the levers, policies, and investments that cities can utilize to foster growth and attract investments. Gain insights from Austin Kilroy, Senior Economist at the World Bank Group.

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Learning from success: What fast growing cities in Europe and globally do

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  1. Learning from success:What fast growing cities in Europe and globally do Austin Kilroy Senior Economist World Bank Group

  2. Three questions: How much local economic growth can we expect? What does it look like? How do cities help it happen?

  3. Solving problems during implementation Changsha, 2005

  4. Solving problems during implementation Changsha, 2015

  5. Gaziantep, 2005

  6. Gaziantep, 2015 • Light-manufacturing firms export to 175 countries around the globe. • Exports increased tenfold from $620 million in 2002 to $6.2 billion in 2013. • Recorded an average of 6.3 percent in annual GDP growth from 2005-2012. • 3.6 percent in annual employment growth.

  7. 1. How much growth can we expect? Local regions can grow very fast

  8. 1. How much growth can we expect? …but economic performance varies a lot. 17% gap p.a. 22% gap p.a. 22% gap p.a.

  9. 2. What does growth look like? Driven by goods & services that can be traded (e.g. agribusiness, tourism, light manufacturing, ICT), rather than by shops or local services. • How…? • Expand the local economy. • Increase productivity. Annual employment growth, 2005-2012

  10. 2. What does growth look like? Sectors of the economy change as income rises.Some industries will grow faster than others.

  11. 3. How do cities help it happen? City rankings are everywhere...

  12. 3. How do cities help it happen? …but they are higher for richer cities– not correlated with growth rates.

  13. National government Cities have multiple levers available 3. How do cities help it happen? Cities have multiple levers, policies, and investments available District / city / local governments Private sector Source: World Bank (2015) Competitive Cities for Jobs and Growth: What, Who, and How 13 13

  14. Subsidized land or office space for priority industries • Concerted effort to ensure essential services available for industries • Co-location of similar firms (clustering) • Support to firms in navigating the city’s regulations • Business-friendly zoning and land-use policies • Streamlined business licensing • Online ‘e-government’ services • Special governance regimes for organized industrial zones/parks 3. How do cities help it happen? Policies and investments for the needs of local firms and investors • Market intelligence and business information • Investment facilitation, promotion and aftercare • Financial incentives targeted to priority industries or sectors • Worker training and talent attraction programs • Improvements to the educational system • University-business networks • R&D grants

  15. 3. How do cities help it happen? This means talking to your firms and investors (Example:Gaziantep, Turkey) • Municipality: • Supportive, not dominating • Business-friendly • City Council: • Forum for information sharing and consensus. • Members: 80% private sector, universities, or civil society • Several thematic working groups issuing recommendations. Credible individuals with a track record of success (e.g. President of Sanko Holdings, one of the largest firms in Turkey). • Local firms: • Rivals, but come together on common interests, (e.g. infrastructure upgrades) • Two business chambers: • Large professional staffs, budgets, and political influence. • Help determine priorities, build consensus, and advocate on behalf of business.

  16. City / local authority may be in a good position to: • Diagnose strategic segment(s); • Convene economic stakeholders; • Lobby regional and federal governments. • What differs between countries: • ….scope for action (legal and practical); • ….devolution legislation; • ….capability of city staff for economic analyses. 3. How docities help it happen? In practice… >>

  17. 3. How docities help it happen? …with somevery common mistakes

  18. Three questions: How much local economic growth can we expect?Varies a lot– cities shrinking as well as growing super-fast. What does it look like?Exportable goods and services. Industries growing at various speeds. How do cities help it happen?Vocabulary of levers to apply– configured according to economic opportunities. Consultations with companies and investors. And attention to budget and implementation.

  19. Austin Kilroy Senior Economist World Bank Groupakilroy@worldbank.org

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