Productivity and <strong>the</strong> Prosperity <strong>of</strong> Citiesmore). Despite <strong>the</strong> difficulty, some <strong>cities</strong> such as Shenzhen,China has made remarkable progress as indicated in <strong>the</strong>box below.This is <strong>the</strong> case <strong>of</strong> Dhaka <strong>the</strong> capital city <strong>of</strong> Bangladesh,with an average annual population growth <strong>of</strong> 4.4 per centbetween 1990 and 2008. The ninth largest city in <strong>the</strong> world,Dhaka is one <strong>of</strong> <strong>the</strong> fastest growing in Asia. While some <strong>of</strong><strong>the</strong> population growth has only reflected recent expansionboundaries, <strong>the</strong> Dhaka region has long attracted migrantsfrom rural areas looking for opportunities in <strong>the</strong> boomingmetropolis. They provide much-needed labour in rapidlyBox 2.1.1Shenzhen: Capitalizing on <strong>the</strong> gains <strong>of</strong> urban growthShenzhen is one <strong>of</strong> <strong>the</strong> world’s fastest growing <strong>cities</strong>. During<strong>the</strong> past 30 years, Shenzhen’s GDP per capita ranked firstamong China’s major <strong>cities</strong> – averaging a phenomenal27 per cent annual growth in urban GDP. Notably, <strong>the</strong> gainsfrom Shenzhen’s fast pace <strong>of</strong> industrialization, urbanizationand modernization have served to enhance <strong>the</strong> quality <strong>of</strong>life <strong>of</strong> all its residents. Income and living conditions haveimproved steadily. A new social security and public healthinsurance system has been successfully implemented. Thecity’s Gini coefficient has remained around 0.3, far less thanthat <strong>of</strong> <strong>the</strong> o<strong>the</strong>r <strong>cities</strong> on <strong>the</strong> mainland, denoting <strong>the</strong> city’sefforts to achieve an equitable growth pattern. 27Perceptions <strong>of</strong> experts regarding <strong>the</strong> distribution <strong>of</strong>economic prosperityper cent20151050Figure 2.1.6AfricaAsiaLACArab StatesSource: UN-Habitat, City Monitoring Policy Survey, 2011All regionsgrowing sectors <strong>of</strong> <strong>the</strong>economy. Fueled by <strong>the</strong>The fast pacecontinuous growth in <strong>the</strong> policy <strong>of</strong> urbanizationin developing countriesfinancial, manufacturingpresents both challengesand telecommunicationsand opportunities for <strong>the</strong>sectors, annual GDPproductivity <strong>of</strong> <strong>cities</strong>.is an estimated USD75billion. 28 At <strong>the</strong> sametime, Dhaka’s GDP percapita is <strong>the</strong> lowest <strong>of</strong> allNot all <strong>cities</strong> aremega-<strong>cities</strong>, suggestingfact fully capitalizingon <strong>the</strong> gains <strong>of</strong> populationthat agglomerationgrowth.diseconomies are likelyto have <strong>of</strong>fset a largeproportion <strong>of</strong> <strong>the</strong> potentialbenefits associatedwith strong population fact Unfortunately,Dhaka’s experiencegrowth. In o<strong>the</strong>r words,is not exceptional. In <strong>the</strong> UN<strong>the</strong>productivity gainsHabitat survey, urban expertsexpressed scepticismassociated with suchregarding <strong>the</strong> progress beinggrowth would have beenmade towards distributingremarkable if only Dhaka <strong>the</strong> benefits <strong>of</strong> a prosperoushad been able to managecity. In <strong>cities</strong> like Bangalore,its growth more effectively Ho Chi Minh and Chongqing,and distribute benefits it in<strong>the</strong> benefits <strong>of</strong> economicprosperity are perceived toa more equitable manner.be captured mainly by <strong>the</strong>As shown ineducated class; in AlexandriaFigure 2.1.6, urban experts and Nairobi, mostly by <strong>the</strong>from all regions share <strong>the</strong>wealthy; while in Santosame grim assessment, with Domino, Dubai and Dar-es-Asia showing just a slightlySalam, largely by politicians.more positive outlook – as20 per cent <strong>of</strong> local expertsperceive that economic prosperity is evenly distributed,compared to 14 per cent in <strong>the</strong> Middle East and roughly7 per cent in Africa and Latin America.How to raise a city’s productivity? Somegeneral policy guidelinesWhile urban productivity is generally linked to stablemacroeconomic conditions, sound institutions andadequate infrastructure, <strong>the</strong> focus <strong>of</strong> policy actions willdepend on a city’s level <strong>of</strong> development.The management <strong>of</strong> urban growth is particularlyimportant if rapidly expanding <strong>cities</strong> in early stages<strong>of</strong> development must be able fully to capitalize on <strong>the</strong>natural benefits <strong>of</strong> agglomeration economies and toreduce future inefficiencies.45
State <strong>of</strong> <strong>the</strong> World’s Cities <strong>2012</strong>/<strong>2013</strong>Ineffective land management, inadequate spendingon infrastructure, distorting taxation schemes and undulycumbersome business regulations are detrimental to anycity’s structural productivity.It is important to identify any barriers that preventany city from maximizing its productivity potential. Inthis regard, reducing traffic congestion, enhancing masstransit options and providing efficient, reliable services arepolicyAs <strong>cities</strong> progressalong <strong>the</strong> developmentpath, <strong>the</strong>y must facilitateproduction processes, addressing<strong>the</strong> technical and organizationalinefficiencies that hinder structuraland operational productivity.policyCities at <strong>the</strong> early stages <strong>of</strong> development needto strive towards enhancing good transportconnectivity to its markets and providing access toadequate health and basic education to its population.policyThe importance<strong>of</strong> soundgovernance structuresto prevent corruption,toge<strong>the</strong>r with strong localinstitutions, and businessconduciveregulations,cannot be overemphasized.China: docks on <strong>the</strong> Huangpu river, which flows through <strong>the</strong> centre <strong>of</strong> Shanghai. The Huangpu is a tributary <strong>of</strong> <strong>the</strong> Yellow River, joining it justbefore that river flows into <strong>the</strong> East China Sea, and thus <strong>the</strong> port has developed as a major import/export hub.© Claudio Zaccherini/Shutterstock.com46
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