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Sixth Urban Research and Knowledge
                                                                      Symposium 2012
                                                          Barcelona, Spain | October 8-10, 2012




             ‘A
             Framework for a Comparative Analysis of the
          Competitiveness of Asian and Latin American Cities’
                                   Brian H Roberts
                                  Emeritus Professor
                          Land Equity International, Australia
                                           and
                                     Marco Kamiya
                     Dirección de Políticas Públicas y Competitividad
                       CAF- Development Bank of Latin America


Session Name: Economic 3 | Cities and Economy - How real is City
                  Competitiveness?
Date .            October 8, 2012
Time              4.00-5.30 pm
Background
   •    The Asian Development Bank (ADB) and the Corporación Andina de
        Fomento (CAF) Development Bank of Latin America are
        collaborating on a wide ranging research project to develop a better
        understanding of factors that underpin and drive the
        competitiveness and development of cities in Asia and Latin
        America.
   •    The banks would like to gain knowledge from this research to
        improve the approaches to their lending program activities and
        project so these are more effectively designed and targeted to
        support the sustainable development of cities in the two regions.
   •    The research examines the process of birth, growth and
        consolidation of regional competitive cities with and outcome
        focused on learning how cities can develop better integrated public
        policies to catalyze private sector development for business in
        support of industry cluster development in the two regions
Brian Roberts Marco Kamiya   Sixth Urban Research and Knowledge Symposium 2012   2
Research Question(s)
 •    How does competitiveness in cities manifest itself, grow and
      develop?
 •    How is policy design to enhance city competiveness conducted?
 •    What are the institutional and economic governance arrangements
      foster competiveness and sustainable economic development?
 •    What are the main instruments existing for cluster development and
      Small and Medium Enterprises (SMEs)?
 •    How is strategic infrastructure planned in consonance with private
      sector needs of urban economic development?
 •    Last, but not least, how and where are social and environmental
      policies applied to avoid social and environmental conflicts with
      respect to sustainable local economic development?



Brian Roberts Marco Kamiya   Sixth Urban Research and Knowledge Symposium 2012   3
]
Research Methodology
Economic Development of Asia and Latin America
(ALA) Cities
•Study Background, Purpose, Objectives
•Urbanization and economic development in ALA
•Drivers of Economic Development in ALA cities
•Challenges of City Economic Development in ALA
•Need for Enhancing City Competitiveness
•Framework for Analysing Competitiveness of ALA cites   City Case Studies:
                                                        • Bogotá: Colombia
                                                        • Curitiba: Brazil
                                                        • Dhaka: Bangladesh
Review of City Competitiveness                          • Guayaquil: Ecuador
Studies                                                 • Lima: Peru
• Global                                                • Ho Chi Minh City: Vietnam
• Asian Countries                                       • Nanning: China
• Latin American Countries                              • Seoul: Republic of Korea
                                                        • Bangkok -HCMC Corridor


Analysis , Lessons Strategic Directions for ADB and CAF to Enhance the
Competitiveness of Asian and Latin-American Cities
Scope of City Case Studies
•   Historic background and general information on the city and its economy
•   Economic profile of the city's economy
•   Institutional governance and business dynamics
•   Analyze the holistic and sector competitiveness of economic drivers
     –   A. Cost of Doing Business
     –   B. Dynamics of Local Economy
     –   C. Human Resources and Training
     –   D. Infrastructure
     –   E. Responsiveness of Government To Business Needs
     –   F. Quality of Life
•   Analysis of adequacy of the strategic infrastructure supporting the city’s
    economy and its development
•   Identify describe and analyze two key Industry clusters that are expected to
    play a key role in the development of the selected city’s economy
•   key strategic initiatives to enhance the competitiveness of the city's
    economy
Policy Consequences
• Improved approaches to the design and implementation
  of ADB-CAF urban sector projects
• More sustainable approaches to planning for local
  economic development in cities
• More competitive and efficiently managed cities in both
  regions that will stimulate trade and exchanges between
  the two regions
• Enhanced cooperation and knowledge sharing between
  ADB-CAF and cities in both regions on urban sector
  economically sustainable development and management
Progress and Initial Findings
•   Study Started in February 2012 and is expected to be completed
    December 2012, with finding and report presented to a joint meeting
    of ADB and CAF-Development Bank of Latin America in May 2013
•   Draft case studies of four Latin American cities are completed.
    Initial indications show Latin American cities are ahead on quality of
    life indicators, lagging in business dynamics, and on a par with
    human capital and infrastructure development.
•   Asian cities are much more export-orientated and growing above
    national economic growth rates. Latin American cities are moving
    into a post–industrialization phase of development and growing
    slower than the national economic growth rate.
•   There is much stronger competition and city to city trading of goods
    and services occurring in Asian than Latin American cities
Latin America: preliminary Results
• Cities: Curitiba (Brazil), Bogota (Colombia), Lima (Peru), Guayaquil
  (Ecuador)
• Curitiba: Excellent public private coordination and a long history of
  planning and long term policies.
• Bogota: Relatively high institutional capacity in the public sector.
• Lima: Fast growing city which should improve public to public
  coordination and private sector involvement in policies.
• Guayaquil: The governor was key to implement planning reforms.

In general competitiveness of cities except for Curitiba are driven by
   recent economic growth and not by a long term vision. Still the
   recent economic boom has allowed to strengthen public capacity
   and public sector growth setting the basis for improved urban
   planning and higher competitiveness.
Knowledge Gaps & Recommendation for
               Future Research
 •    Methodologies and indicators used to measure the competiveness of
      cities vary significantly at a global and national level
 •    Data on the economy of Asian cities is much more difficult to obtain
      than for Latin American cities
 •    Data and statistics on trade between cities is extremely difficult to
      obtain in the two regions
 •    Factors and drivers which shape the competiveness of cities vary
      significantly and the correlation between level of economic
      development and competitiveness is not well understood
 •    The role and importance of industry clusters as drivers of economic
      development is not well understood in the context of developing cities




Brian Roberts Marco Kamiya   Sixth Urban Research and Knowledge Symposium 2012   9
Questions

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Roberts and Kamiya, Barcelona Symposium Economics 3 Cities, Cluster And Innovation How Real Is City Competitiveness

  • 1. Sixth Urban Research and Knowledge Symposium 2012 Barcelona, Spain | October 8-10, 2012 ‘A Framework for a Comparative Analysis of the Competitiveness of Asian and Latin American Cities’ Brian H Roberts Emeritus Professor Land Equity International, Australia and Marco Kamiya Dirección de Políticas Públicas y Competitividad CAF- Development Bank of Latin America Session Name: Economic 3 | Cities and Economy - How real is City Competitiveness? Date . October 8, 2012 Time 4.00-5.30 pm
  • 2. Background • The Asian Development Bank (ADB) and the Corporación Andina de Fomento (CAF) Development Bank of Latin America are collaborating on a wide ranging research project to develop a better understanding of factors that underpin and drive the competitiveness and development of cities in Asia and Latin America. • The banks would like to gain knowledge from this research to improve the approaches to their lending program activities and project so these are more effectively designed and targeted to support the sustainable development of cities in the two regions. • The research examines the process of birth, growth and consolidation of regional competitive cities with and outcome focused on learning how cities can develop better integrated public policies to catalyze private sector development for business in support of industry cluster development in the two regions Brian Roberts Marco Kamiya Sixth Urban Research and Knowledge Symposium 2012 2
  • 3. Research Question(s) • How does competitiveness in cities manifest itself, grow and develop? • How is policy design to enhance city competiveness conducted? • What are the institutional and economic governance arrangements foster competiveness and sustainable economic development? • What are the main instruments existing for cluster development and Small and Medium Enterprises (SMEs)? • How is strategic infrastructure planned in consonance with private sector needs of urban economic development? • Last, but not least, how and where are social and environmental policies applied to avoid social and environmental conflicts with respect to sustainable local economic development? Brian Roberts Marco Kamiya Sixth Urban Research and Knowledge Symposium 2012 3 ]
  • 4. Research Methodology Economic Development of Asia and Latin America (ALA) Cities •Study Background, Purpose, Objectives •Urbanization and economic development in ALA •Drivers of Economic Development in ALA cities •Challenges of City Economic Development in ALA •Need for Enhancing City Competitiveness •Framework for Analysing Competitiveness of ALA cites City Case Studies: • Bogotá: Colombia • Curitiba: Brazil • Dhaka: Bangladesh Review of City Competitiveness • Guayaquil: Ecuador Studies • Lima: Peru • Global • Ho Chi Minh City: Vietnam • Asian Countries • Nanning: China • Latin American Countries • Seoul: Republic of Korea • Bangkok -HCMC Corridor Analysis , Lessons Strategic Directions for ADB and CAF to Enhance the Competitiveness of Asian and Latin-American Cities
  • 5. Scope of City Case Studies • Historic background and general information on the city and its economy • Economic profile of the city's economy • Institutional governance and business dynamics • Analyze the holistic and sector competitiveness of economic drivers – A. Cost of Doing Business – B. Dynamics of Local Economy – C. Human Resources and Training – D. Infrastructure – E. Responsiveness of Government To Business Needs – F. Quality of Life • Analysis of adequacy of the strategic infrastructure supporting the city’s economy and its development • Identify describe and analyze two key Industry clusters that are expected to play a key role in the development of the selected city’s economy • key strategic initiatives to enhance the competitiveness of the city's economy
  • 6. Policy Consequences • Improved approaches to the design and implementation of ADB-CAF urban sector projects • More sustainable approaches to planning for local economic development in cities • More competitive and efficiently managed cities in both regions that will stimulate trade and exchanges between the two regions • Enhanced cooperation and knowledge sharing between ADB-CAF and cities in both regions on urban sector economically sustainable development and management
  • 7. Progress and Initial Findings • Study Started in February 2012 and is expected to be completed December 2012, with finding and report presented to a joint meeting of ADB and CAF-Development Bank of Latin America in May 2013 • Draft case studies of four Latin American cities are completed. Initial indications show Latin American cities are ahead on quality of life indicators, lagging in business dynamics, and on a par with human capital and infrastructure development. • Asian cities are much more export-orientated and growing above national economic growth rates. Latin American cities are moving into a post–industrialization phase of development and growing slower than the national economic growth rate. • There is much stronger competition and city to city trading of goods and services occurring in Asian than Latin American cities
  • 8. Latin America: preliminary Results • Cities: Curitiba (Brazil), Bogota (Colombia), Lima (Peru), Guayaquil (Ecuador) • Curitiba: Excellent public private coordination and a long history of planning and long term policies. • Bogota: Relatively high institutional capacity in the public sector. • Lima: Fast growing city which should improve public to public coordination and private sector involvement in policies. • Guayaquil: The governor was key to implement planning reforms. In general competitiveness of cities except for Curitiba are driven by recent economic growth and not by a long term vision. Still the recent economic boom has allowed to strengthen public capacity and public sector growth setting the basis for improved urban planning and higher competitiveness.
  • 9. Knowledge Gaps & Recommendation for Future Research • Methodologies and indicators used to measure the competiveness of cities vary significantly at a global and national level • Data on the economy of Asian cities is much more difficult to obtain than for Latin American cities • Data and statistics on trade between cities is extremely difficult to obtain in the two regions • Factors and drivers which shape the competiveness of cities vary significantly and the correlation between level of economic development and competitiveness is not well understood • The role and importance of industry clusters as drivers of economic development is not well understood in the context of developing cities Brian Roberts Marco Kamiya Sixth Urban Research and Knowledge Symposium 2012 9