This document discusses 11 key urban trends that are critically important for the development of cities in Russia: 1. Urbanization and population growth in cities will continue globally and in Russia. 2. Cities are expanding into large economic regions through metropolization. 3. Many small and medium cities face population declines and economic challenges. 4. Post-industrial redevelopment of former industrial sites is an opportunity for cities. 5. Cities are evolving from places focused on industry to providing high quality of life (City 1.0 to 3.0). 6. Smart growth promotes sustainable development through balanced planning. 7. Cities use branding and marketing to attract residents, tourists, and investors.

1. CITIES 2011
12
German Gref,
President and Chairman of the
Board of Sberbank Russia,
for the Moscow Urban Forum URBAN TRENDS
OF CRITICAL IMPORTANCE
TO RUSSIA

2. Russia’s cities is being impacted by all of the key trends
influencing the development of today’s global cities.
AEROTROPOLIS
DEVELOPMENT CORPORATIONS
SHRINKING CITIES
STRATEGIC PLANNING PUBLIC SPACES
CITY 3.0
URBANIZATION CITY 2.0
EVENT ECONOMY
NEW URBANISM SMART GROWTH
CITY BRANDING
DEINDUSTRIALIZATION
GENTRIFICATION
METROPOLIZATION
CITY 1.0

3. 1. URBANIZATION
Urbanization of world economy and population is
continuing to grow.
Over 50% of the world’s population lives in cities.
Over 60% will live in cities by 2025.

4. Urban population expanded 4 times since 1950.
80% of global GDP is produced in cities.
The world’s 600 largest cities produce 60% of global GDP.
20% of total world population is settled in those 600 cities.
The world’s 100 largest cities will account for 35% of global GDP
growth by 2025*
Dubai 1990 2003 2007
(UAE) 0.370 mln 1.204 mln 1.870 mln
residents** residents** residents**
McKinsey Study “Urban World: Mapping the Economic Power of Cities”
**censuses in 1985; 2005; 2010

5. 74% of the Russian population lives in cities.
Only one-third of Russian urban population lives in large cities.
Small cities will continue to suffer population losses,
Millionaire cities will continue to grow at their cost.
Saint Petersburg, 4.868 mln people
Moscow, 11.551 mln people Novosibirsk, 1.475 mln people

6. 2. METROPOLIZATION
Expansion and transformation of large cities into vast economic
regions encompassing significant swaths of surrounding
territory.
METROPOLIS
[from the Ancient Greek: μητρόπολις literally:
“mother city”]
- region comprising a densely-populated
urban core and more sparsely-populated
surrounding areas. The entire territory
features an integrated infrastructure,
industrial and residential structure.
There is a trend towards concentration of the
urban population within major cities and
reduction of the relative population share of
small towns continues in Russia.

7. Metropolization in Russia led to the collapse of all major cities.
It is a result of city growth that was guided last 20 years by the
commercial interests of developers, not the strategic planning.
Large-scale, unbalanced Map of commuter traffic from the Moscow Motor vehicle traffic resulting
development of Greater Moscow suburbs into the downtown area between from commuter migration
08:00 and 10:00

8. • How city growth can be
decentralized?
Moscow
Amalgamation with new
territories will proceed on the
• Which functions driving
basis of decisions adopted by
the governmental authorities
of two of the Russian
Federation’s constituent
the city’s collapse should entities: the City of Moscow
and Moscow Region
be transferred to new
territories?
• How can business interest
in the development of
Moscow’s new territories
be generated?
• How can Moscow’s
environmental problems
be solved?
Current territory New city limits Territory of Population
of Moscow (as of August 2011) Kaluga Region centers
СП – rural centers ГП – urban centers
Expansion plan of Moscow’s city limits (2011)

9. 3. SHRINKING CITIES
- worldwide trend towards the population loss and economic
decline of the majority of small and medium-sized cities. In
Russia part of those cities defined as monocities.
DETROIT, USA
2011

10. In Russia, several hundreds of small and medium-sized cities are
in danger zone due to their heavy dependency on exhausting
raw natural resources, or technologically obsolete industries.
KARABASH, Chelyabinsk Region IULTIN, Chukotka Autonomous District
Center of copper smelting industry, Center of tin and tungsten mining industry.
Declared as an “ecological disaster zone” in 1996 by order of 1994 – mining wound down due to unprofitability.
the RF Ministry of the Environment. 1995 – city of the many thousands was officially disbanded.
Since 1989, the city’s population has fallen by 12% to
15,057 residents.

11. The risk of shrinkage can threat even industrial areas of large
cities. Russian cities have to elaborate the approaches of
renovation of unused industrial sites.
MURMANSK
Since 1989, the city’s population has dropped by 34% to 307 664 residents.
Together with its surrounding area, Murmansk is an important strategic center in Russia’s Northwest. Following dramatic budgetary
cutbacks for the Russian Armed Forces in the 1990s, many bases were disbanded and the towns surrounding military facilities
abandoned.

12. 4. DEINDUSTRIALIZATION
By the end of XX century, the industries were taken away from
the territories of most global cities. Post-industrial
redevelopment of those sites made a huge impact on cities
growth.
MOSCOW, 1920 MOSCOW, since 2007
former brewery turned “Moskovskaya Bavaria” Winery “Vinzavod” Center of Modern Art.
Complex.

13. The world has amassed a wealth of experience in terms of the
economic development of the service sector and creative
industries based on the redevelopment of old industrial
facilities. Those lessons should be learned, because Russian
cities will have to enter the period of mass deindustrialization.
BARCELONA, 1970 BARCELONA, 1975
Cement plant Architectural offices, expo sites,
apartments, hotel rooms, gardens

14. Beyond the fostering of creative industries and the service sector, the post-
industrial redevelopment of industrial zones can also involve the formation
of international financial centers, innovation centers and global universities.
LONDON, 1980 LONDON, 2011
Docklands in London – the biggest London’s new business district, a
port in the world major international financial center

15. Industrial belt of Moscow occupies near 20% of its territory. The experience
of redevelopment of former industrial zones is formed in Moscow. It ranges
from very negative to quite interesting even within the scope of global
standards.
MOSCOW, until 2004 MOSCOW, 2010
Garages at the site of the “Krasniy “Strelka” Institute for Media, Architecture
Oktyabr” Factory and Design; public space

16. 5. CITIES 1.0, 2.0, 3.0
In the second half of the XX Century, global cities fundamentally changed
their development ideology, coming to embrace the concept that cities
should provide people with a high quality of life. The global leaders didn't
stop there – having their vision on further development in terms of growing
into spaces, in which certain social groups find it convenient to live and
work. This is how global metropolises become network cities.
CITIES 1.0 CITIES 3.0
Modern Russian cities – work cities Direction 2 – Cities of the future
Product – infrastructure Outpacing Post-informational cities
CITIES OF MACHINES development Product – cultural codes,
communications
NETWORK CITIES
Direction 2 –
Catch-up
development
CITIES 2.0
Modern European cities
“Liveable” cities
Product – dwelling place
PEOPLE CITIES

17. Most Russian cities still remain collapsed industrial cities. Many European
cities are developing as ideal spaces for living. Global leaders pick and
choose the residents, investors and tourists who share their vision.
transportation cultural environment
infrastructure cultural heritage
communications
housing and public security public spaces aesthetics
utilities opportunity
small business personal development
international communications
catering public transportation telecommunications
education
financial security communications
jobs civil liberties
commerce cultural sites IT-infrastructure
housing environment
(museums, galleries) congress-and-expo
technology infrastructure
KRASNOYARSK, 1.0 BERLIN, 2.0 SINGAPORE, 3.0

18. 6. SMART GROWTH
The collapse of uncontrollably expanding cities formed the global demand for
the theory of Smart Growth, which is characterized by the pursuit of sustainable
development and uses a comprehensive approach to the development of
infrastructure, office and residential real estate, and public spaces.
Office/commercial
development - collapse of the city’s
transportation infrastructure;
- reduced quality of life
chaotic, unbalanced
development
residential development
territory
brownfield
grayfield
greenfield
smart growth
sustainable urban
development,
increased quality of
life
comprehensive territorial analysis in creation of transportation balanced model
the context of the city’s urban- and pedestrian infrastructure, of territorial
planning development parks and public spaces, development
preservation of historical
environment

19. Smart growth is based on the 10 basic principles of the New Urbanism. This
is the ideology of the compact “pedestrian” city or district featuring the
services residents need – and often jobs within walking distance of home.
Pedestrian accessibility High-quality architecture
and urban planning
Traditional neighbourhood
Connectivity structure
High density
Multifunctionality and
diversity Green transportation
Diversified and mixed Sustainable
development development
QUALITY OF LIFE: taken together, these principles create a high quality of life and allow for the
formation of comfortable residential areas, populated by more stable and highly-developed communities.

20. 7. MARKETING AND BRANDING OF
CITIES AND PLACES
Increased competition among cities for residents, tourists and investors has
focused the sharp attention on the need for the professional branding of
places, just like the branding of goods and services is done for the commercial
markets.

21. 8. PUBLIC SPACES
- the most critical infrastructure element of City 2.0 – a city geared towards
the individual and ensuring a high quality of life. Comfortable parks,
boulevards, grounds and squares brimming with social and economic life – a
characteristic feature of global cities.

22. Public spaces are so important for global cities that they have priority over
commercial development within the brownfields renovation projects.
New York, 2009
High-Line – Manhattan park located about 10 meters
above ground level – until the 1980s, served as a line
in the city’s elevated rail network. In the 1990s, it was
decided to transform the line into a park path.

23. Soviet-era squares and boulevards failed to become fully-fledged public
spaces relevant to residents’ daily lives. Post-soviet cities will need to make
quite an effort to fill their frequently-empty squares and parks with life.
DONETSK, Lenin Square KHABAROVSK, Lenin Square

24. While other global cities have been busy freeing-up their previously-
developed territories to make way for new public spaces, Moscow has
managed to permit the commercial development of a whole range of
priceless spaces in the city center.
MOSCOW, Manezh MOSCOW, Manezh

25. 9. EVENT ECONOMY
Economic sector that becoming more and more significant to urban
development. The event economy is used as a driver for the development of
many territories through the attraction of investments and tourism flows.
MOSCOW, 1980 SINGAPORE, 2010
Olympic Games Youth Olympic Games

26. Event economy has become a mainstay of development for many cities
in Europe and US throughout the post-industrial period.
museum capital
Bilbao, Spain
Population: 353,200
specialization: cultural and
museum center
exhibition capital
Hanover, Germany
Population: 522,600
specialization: exhibitions,
conferences, events
concert capital
Vienna, Austria
Population: 1,670,300
specialization: music concerts
(opera, philharmonic, etc.),
museum exhibitions

27. Russia’s cities must develop their congress-and-exhibition
infrastructure (hotels, expo-centers, congress centers) in order
to participate in the global event economy, which share is now
close to 2% of global GDP
Official catalogue
Guest registration
Administration
WC
PAVILION No. 5
Cafe
PAVILION No. 1
Telephone
PAVILION No. 2
First aid point
PAVILION No. 8
Bus stop
“FORUM” PAVILION
PAVILION No. 6 Subway station
Expo customs point
Currency exchange, ATM
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PAVILION No. 4 ya
PAVILION No. 7

28. 10. AEROTROPOLIS
For any modern city, airport quality is of vital importance. For some global
cities, the airport enjoys a status of such prominence that they are called
aerotropolises – cities developing around and on the basis of airports.

29. Airports have emerged as the drivers of business and urban development in the 21st century, just
as highways were in the 20th Century, railways were in the 19th Century, and seaports were in the
18th Century. The aerotropolis is quickly becoming the focal point of urban activity, where airline
passengers and local residents alike can work, shop, conduct business, dine, sleep and find
entertainment options – all within 15 minutes of the airport.
The state of most Russian airports and their associated economies leaves something to be desired.
AMSTERDAM, Schiphol Airport KAZAN, Kazan International Airport
Population: 780,152 Population: 1,196,738
Passenger turnover: 45.2 mln (2010) Passenger turnover: 958,600 (2010)
Schiphol – critical aviation gateway to Europe, along Kazan’s only civil aviation airport. Kazan – Russia’s geographical
with Heathrow Airport in England, Frankfurt Airport center, with tremendous potential to develop into one of the
in Germany, and Charles de Gaulle Airport in Paris country’s main transportation hubs.

30. 11. STRATEGIC PLANNING
Urban planning has been called the most complex interdisciplinary field of study. Urban
development depends on economics, politics, sociology, culture, science and technology. Urban
planning at the end of the XX Century – beginning of the XXI Century has demanded dramatic
qualitative improvements to the strategic planning of the world’s cities. In Russia, only two
major cities (Kazan and Perm) enjoy European-quality strategies and master plans. Developing
international-quality strategies for at least 15 of the country’s major cities is essential to
ensuring the competitiveness of the domestic economy.
strategic master plan of Perm, Russia (2010)

31. 10. URBAN DEVELOPMENT
CORPORATIONS
The complexity and sheer scope of urban and territorial transformation have created
universal demand for Urban Development Corporations, which have assumed a central role
in organizing coordination between cities and investors and preparing sites for new types of
development.
Development strategy for the Thames Docks, managed by the
London Development Agency, Great Britain