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Megacity Challenges a Stakeholder Perspective

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Megacity Challenges a Stakeholder Perspective Publisher: Siemens AG Corporate Communications (CC) Wittelsbacherplatz 2, 80333 Munich For the publisher: Stefan Denig [email protected] (Tel. +49 89 636 83110) Editorial Office: Gareth Lofthouse, Economist Intelligence Unit Research: GlobeScan, Toronto MRC McLean Hazel, Edinburgh Picture Editing: Judith Egelhof, Publicis Munich Internet: www.siemens.com/megacities; Dr. Ulrich Eberl, Ulrike Zechbauer, Siemens AG Layout / Lithography: Rigo Ratschke, Seufferle Mediendesign GmbH, Stuttgart Graphics: Jochen Haller, Seufferle Mediendesign GmbH, Stuttgart Printing: Bechtle Druck&Service, Esslingen Picture Credits: Gettyimages (58-59, 60-61, 62-63). The copyright of all other images is held by Siemens AG. Printed in Germany. Reproduction of the articles in whole or in part requires the permission of the publisher. This also applies to storage in electronic databases, on the Internet and reproduction on CD-ROM. Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd., Siemens AG nor their affiliates can accept any responsibility or liability for reliance by any person on this information. A stakeholder research project conducted by GlobeScan and MRC McLean Hazel project conducted by research A stakeholder Megacity Challenges A stakeholder perspective A research project conducted by GlobeScan and MRC McLean Hazel Sponsored by Siemens Sponsored by Siemens Challenges Megacity Preface Acknowledgements This report was written by the Economist Intelligence Unit, based on research conducted by MRC McLean Hazel and GlobeScan. We would like to thank all those who participated in the survey for their valuable insights and time. Shanghai Megacity Challenges Content t some point in 2007, humanity will contributes to economic prosperity, further Chapter Page Areach a significant demographic mi- improving quality of life. Unfortunately, lestone: for the first time in history more the infrastructure in many cities lags be- people will live in cities than the coun- hind the population’s needs — a major 01 Key Findings 4 tryside, according to predictions by the challenge for city governments in both United Nations. By 2030, over 60% of emerging and industrialized nations. 02 Megacity Challenges: an Overview 10 people will live in cities. The growth rate is particularly rapid in many of the so-cal- This report summarizes the key find- led megacities, cities with more than 10 ings of a unique global research project 03 Stakeholder Priorities: the Big Picture 18 million inhabitants. The megacities listed undertaken by two independent research by the UN already have a total population organizations with the support of 04 Five Infrastructures 24 of around 280 million. They are increa- Siemens, the infrastructure provider. The singly the growth engines of their respec- goal of the project was to carry out re- tive national economies. But as these search at the individual megacity level to 05 Transportation 26 cities and economies grow, so do the gather objective data as well as perspec- challenges. One key issue is the burden tives from mayors, city administrators 06 Electricity 32 that growth is placing on urban infra- and other experts on local infrastructure structures. challenges. Over 500 public- and private- sector experts from 25 cities were inter- 07 Water and Waste Water 38 Urban residents the world over want viewed for this purpose. — and deserve — a good quality of life. They need good air to breathe, good wa- The result is a fascinating and, we 08 Healthcare 44 ter to drink and reliable electricity to hope, useful picture of how challenges power their lives. People need healthcare. are prioritized and what infrastructure 09 Safety and Security 50 They also need to be mobile — so trans- solutions are best able to improve the portation systems must be capable of local economy, environment and quality transporting millions of people while of life of megacities. 10 City Governance and Finance 56 putting as little strain as possible on the environment and city budgets. In other We hope you enjoy reading the report! 11 Conclusions 64 words, a good quality of life requires a Prof. George Hazel, OBE, well-functioning infrastructure. More- MRC McLean Hazel over, an effective infrastructure in turn Doug Miller, GlobeScan 12 Appendix: Methodology 66 2 Megacity Challenges Megacity Challenges 3 Key findings New York City Key Findings 01 Key findings will be the year that, for the first edge and industry, but on an unprecedented trends that will shape urban development in 25 2007time in history, more people will scale. In varying forms, they all face hugely global cities over the coming years. The find- ■ Megacities prioritize economic competitiveness and employment live in cities than in the country. For many, it is complex social and environmental challenges. ings are based on an in-depth survey of over ■ The environment matters, but may be sacrificed for growth the megacity that symbolizes everything that is Achieving the opportunities for human and 500 megacity stakeholders, including elected ■ Transport overtakes all other infrastructure concerns inspiring and troubling about this era of rapid economic development that megacities afford, officials, public- and private-sector employees, ■ Better governance is a vital step towards better cities urbanization. while improving their many problems, will and influencers such as academics, NGOs and ■ Holistic solutions are desired but difficult to achieve Today’s megacities are home to almost one require the development of innovative infra- media. This survey was supplemented with ■ Cities will seek to improve services, but could do more to manage demand in ten of the world’s urban population. Like all structure solutions and new approaches to met- extensive secondary research, enabling us to ■ Technology will help deliver transparency and efficiency great metropolises before them, these mega- ropolitan governance. shed light on the key challenges faced by global ■ The private sector has a role to play in increasing efficiency cities act as magnets for trade, culture, knowl- This report explores the key challenges and cities at various stages of development. 4 Megacity Challenges Megacity Challenges 5 Key findings Buenos Aires Megacities prioritize economic competi- the top megacity infrastructure challenge by a the different levels of municipal government, this context, the proper pricing of services Key findings of the research tiveness and employment. When asked large margin. It is the one infrastructure area together with a lack of strong leadership, could be a step forward. which issues drive decision-making, 81% of that stakeholders believe has the biggest according to the survey. Stakeholders express include the following. stakeholders involved in city management impact on city competitiveness. They are also a clear desire for a more holistic approach to Technology will help to deliver trans- cite the importance of the economy and highly aware of its environmental impact (for city management, but this is rarely the reality parency and efficiency. Technology can employment. There is a strong focus on creat- example, air pollution) and are keen to move to today. Many megacities have a multitude of help city governments in two major ways: by ing jobs, with unemployment emerging as the greener mass transit solutions. It is not surpris- administrative bodies with overlapping and making them more efficient, and more top economic challenge for survey respon- ing therefore to find that transport also poorly defined responsibilities, which inevita- accountable to their citizens. Eight in ten dents from Emerging and Transitional cities. emerges as the top priority for investment. bly saps efficiency and makes strategic plan- respondents think that their city will increas- Competitiveness in the global economy is Stakeholders acknowledge that the four other ning difficult. Governance structures need to ingly integrate advanced information technol- another important consideration. Six in ten infrastructure sectors covered by this study – balance the needs of the city with the wider ogy into their administration and operations stakeholders think that their cities place a water, electricity, healthcare and safety & secu- metropolitan area, and also take into account over the next five years. Moreover, city man- high importance on making themselves com- rity — are also in need of investment. Interest- the interdependencies between the various agement specialists predict a strong emphasis petitive to attract private investment when ingly, they are less likely to see a strong link infrastructures (water and healthcare, for on digitalization or e-government rather than deciding on infrastructure issues. between spending in these areas and improved example). Cities and their needs are complex on recruiting more staff (64% to 36%). Fur- competitiveness, despite the fact that each has and the traditional, departmentally organized thermore the value of technology is not The environment matters, but may be an important impact on the overall attractive- approach to city governance needs to be restricted to rich cities. Cash-strapped Emerg- sacrificed for growth. Stakeholders through- ness of the city for investment. rethought to enable more holistic solutions ing cities place almost as much importance on out the survey place a high importance on on the one hand, and more responsiveness e-government and digitalization as those in environmental issues.
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