Presentation on the inter
Open Days, Brussels, Belgium 6-9 October 2014, presentation on the international dimension of European urban policy by Ioannis Kaplanis, Economist (Urban Programme) Regional Development Policy Division
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The international-dimension-of-european-urban-policy
1. The International Dimension of
(European) Urban Policy- a view
from the OECD
Ioannis Kaplanis
Economist
Regional Development Policy Division
Public Governance and Territorial Development Directorate
Open Days- 12th European Week of Cities and Regions
Brussels, 9 October 2014
2. Topics
1| Urbanisation trends
2| A new urban paradigm- European and
international
3| Governance arrangements matter
4| Collaboration at the international level
3. 3
Most people across the OECD live in cities
13.4%
25.3%
27.3%
28.0%
28.7%
29.3%
29.8%
30.2%
35.3%
36.0%
36.8%
37.2%
37.4%
37.9%
38.8%
39.3%
39.6%
40.0%
40.4%
40.8%
44.4%
47.0%
48.3%
48.6%
50.9%
53.5%
56.3%
68.5%
73.2%
83.1%
24.3%
22.2%
25.1%
11.9%
21.7%
17.9%
25.0%
20.3%
20.9%
18.8%
32.3%
36.9%
15.9%
17.9%
25.0%
16.1%
15.8%
9.1%
25.0%
33.3%
14.7%
10.8%
24.9%
18.3%
11.0%
15.0%
16.8%
9.5%
13.4%
16.9%
62.4%
52.5%
47.6%
60.1%
49.5%
52.9%
45.2%
49.5%
43.8%
45.3%
30.9%
26.0%
46.7%
44.3%
36.3%
44.5%
44.5%
50.9%
34.7%
25.9%
40.9%
42.2%
26.8%
33.1%
38.0%
31.5%
26.9%
21.9%
13.4%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Luxembourg (1)
Slovak Republic (8)
Norway (6)
Finland (7)
Slovenia (2)
Hungary (10)
Czech Republic (16)
Poland (58)
Italy (74)
Switzerland (10)
Denmark (4)
Spain (76)
Netherlands (35)
Sweden (12)
Ireland (5)
Germany (109)
Portugal (13)
Estonia (3)
Greece (9)
France (83)
United Kingdom (101)
Belgium (11)
Austria (6)
Chile (26)
OECD (1179)
Mexico (77)
United States (262)
Canada (34)
Japan (76)
Korea (45)
Metropolitan Areas (500,000+) Small/Medium Sized Functional Urban Areas (50,000-500,000) Residents living outside Functional Urban Areas
4. 4
The rise of the mega-cities
0
5
10
15
20
25
30
35
40
45
50
-7000 -3500 -2500 -2100 -700 200 600 900 1200 1500 1800 1825 1900 1950 2007 2020 2025
Rio
London
Beijing
NYC
Sao Paolo
Mexico City
Mumbai
Tokyo
Delhi
Uruk
(40k)
Mari
(50k) Ur
(65k)
Constantinople
(600k)
Baghdad
(900k)
Babylon
(200k)
Rome
(1.2M)
Kaifeng
(1M) Beijing
(1M)
Mega-city =
10M
(- = BC)
Largest cities in the world 7000 BC until 1800
NYC only mega-city in 1950
29 mega-cities in 2025
9 mega-cities in 1985
21 mega-cities in 2012
Population (Millions)
Source: http://geography.about.com/library/weekly/aa011201a.htm, citing Chandler, T. (1987) Four Thousand Years of Urban
Growth: An Historical Census, Edwin Mellen Press.
5. 0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1950-1970 1971-1990 1991-2010 2011-2030 2031-2050
Developed countries
Developing & emerging
countries in Asia
Developing & emerging
countries in other regions
5
Urban population is growing at the fastest
speed in developing and emerging countries
Source: UNDESA Population Division (2012), World Urbanization Prospects: The 2011 Revision
New urban dwellers in absolute numbers (1950-2050)
Billions
7. 7
Income growth comes with urbanisation; however
urbanisation doesn’t guarantee it
Urbanisation rate (%)
Income
growth
40-50%
Country Group A
(urbanisation hand-in-
hand with
income growth)
Country Group B
(intermediate)
Country Group C
(urbanisation
doesn’t bring
income growth)
8. The traditional paradigm:
• Efficiency and growth come first.
• Pursuit of equity or environmental goals should interfere as little as
possible with the pursuit of growth.
• Regional policy as the ‘residual sectoral policy’.
A new approach:
• Giving greater weight to complementarities (not just tensions) between
efficiency, equity and environmental objectives.
• Complementarities between these three dimensions of progress are
most visible and most effectively managed in particular places.
• Not one size fits all- but place based policies
• Urban/regional policy is not simply another line of policy running in
parallel to sectoral policies: it is about co-ordinating and optimising the
mix of sectoral policies where they interact – in specific places. 8
Reconciling efficiency, equity and
environmental sustainability
9. 9
Sustainability must be pursued in all
its three dimensions
Identifying and promoting links between economic,
environmental and social goals is both possible and
critical to building cities/regions that work
Efficiency Equity Environmental
sustainability
Economic
policies
Sustained
growth
Economic reforms
may increase equity
Green growth
policies can improve
sustainability
Social policies
Social cohesion can
increase efficiency
(e.g., trust, security,
knowledge)
Social
cohesion
Inequality can be
reduced without
environmental harm
(e.g., replace fuel
subsidies with
transfers)
Environmental
policies
Green growth
policies can boost
innovation and
efficient resource use
Environmental
degradation tends to
hit disadvantaged
groups more
Environmental
sustainability
Sustainable development requires a search for policy complementarities
10. Role of Subnational Governments by types of
expenditures
26%
18%
14% 14%
12%
16%
20%
13%
12%
16%
20%
18%
0%
5%
10%
15%
20%
25%
30%
Education Health Economic
Affairs
General
Services
Social
protection
Other*
OECD (27 countries) EU27
OECD and EU (2011, % of expenditure)
*Other: Defence; Public order and safety; Housing and community amenities; Recreation, culture and religion; Environment.
12. • Recent OECD analyses suggest that governance
fragmentation can more than offset the economic benefits
of agglomeration.
• Local and regional policies can do more to reduce
agglomeration costs (congestion, pollution, etc) than to
enhance agglomeration benefits.
• Findings on polycentrism point to the potential benefits of
systems of cities: connectivity matters.
• Agglomeration is not a synonym for density.
12
Agglomeration and governance
13. 13
Agglomeration benefits are real
Productivity increases with city size.
Source: OECD Metropolitan Database.
14. 14
Agglomeration in support of
territorial cohesion?
Economic growth increases with proximity to large cities
Yearly growth rates of GDP per capita in TL3 regions (1995-2010) and driving time to the closest large
metropolitan area of 2m or more inhabitants
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
within 45 min.
by car
45 to 90 min.
by car
90 to 180 min.
by car
180 to 300 min.
by car
more than 300
min. by car
Note: Yearly growth rates controlling for country fixed effects and initial GDP. Eighteen OECD countries included.
Source: Ahrend, R and A. Schumann (OECD, 2014)
16. • Urban sprawl creates
negative externalities in
Metropolitan areas (MAs)
• Cooperation is a way to
internalize the externalities
when making policy
decisions
Governance bodies reduce the cost of
administrative fragmentation
Difference significant at the 99%-level after
controlling for log-population levels and
country specific trends.
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
1
1.2
1.4
With Governance
Body
Without Governance
Body
Change in Urban Sprawl
Based on OECD Metro
Governance Survey
17. Governance bodies increase well-being
55%
60%
65%
70%
75%
80%
With Transport
Authorities
Without Transport
Authorities
Share of Citizens Satisfied with Public
• Public Transport Transport
projects usually cut
through many
jurisdictions
• Cooperation is
required for effective
implementation and
coordination of
services
• Citizens are more
satisfied in MAs
that have sectoral
authorities for
public transport
Based on European Urban Audit perception survey.
Difference significant at 95% level.
18. • Invest using an integrated strategy tailored to different places
• Adopt effective co-ordination instruments across levels of govt
• Co-ordinate across SNGs to invest at the relevant scale
Pillar 1
Co-ordinate across
levels of governments
and policies
• Assess upfront long term impacts and risks
• Encourage stakeholder involvement throughout investment cycle
• Mobilise private actors and financing institutions to diversify sources
of funding and strengthen capacities
• Reinforce the expertise of public officials & institutions
• Focus on results and promote learning from experience
Pillar 2
Strengthen capacities
and promote policy
learning at all levels of
government
• Develop a fiscal framework adapted to the objectives pursued
• Require sound and transparent financial management at all levels
• Promote transparency and strategic use of procurement
• Strive for quality and consistency in regulatory systems across
levels of government
Pillar 3
Ensure proper framework
conditions for public
investment at all levels of
government
18
An OECD instrument: The Principles for Effective Public
Investment Across Levels of Government
- The first OECD Instrument in the area of regional policy and where
sub-national governments are explicitly recognised
19. • OECD “Urban trends and governance” project financed by DG
Regio (agglomeration, governance, connectivity, etc)
• FUAs: new definition of cities by OECD and EU based on
functional economic criteria than administrative boundaries
• Collaboration of OECD with Eurostat on Regional & Metropolitan
Area Databases
• Support by EU for OECD research on international experiences of
urbanisation (e.g. National Urban Policy Review of China)
• Convergence of views between the CoR and the OECD on multi-level
governance approaches and further collaboration on
implementation
19
Collaboration of OECD and EU institutions
on urban policy
20. 20
The OECD Metropolitan Database
Interactive maps and data:
For metro areas: http://measuringurban.oecd.org/
For regions: http://stats.oecd.org/OECDregionalstatistics/
22. • Growing numbers of people will reside in cities in the future- mainly
from emerging/developing countries
• Urbanisation path matters, since durability in time; can affect prospects
of global economy
• New urban paradigm; smart, sustainable and inclusive growth
• Agglomeration benefits are real; but connectivity/polycentricity matter
• Fragmented governance can adversely affect urban performance
• Need to:
• Make best use of city specific assets
• Utilise policy complementarities at the local level; Functional Urban
Area level
• Co-ordinate across jurisdictional lines and across levels of government
• In search of a balanced, sustainable and inclusive urban growth model;
what next?
22
Concluding remarks
23. Thank you for your attention!
ioannis.kaplanis@oecd.org