Expert Group Meeting on Governance & Capacity Development for Urban Resilience Equity and Economic diversification in Cities 23 November 2018 1
Group C objectives Equity and Economic diversification in Cities While cities in the region are extremely successful in building wealth; very few cities of them have provided secure livelihoods for all income groups , or have frameworks in place to help them to bounce back in case of economic crises , or changes in global labor markets . There are also new threats on the horizon: “Fourth Industrial Revolution”, trade wars and increasingly footloose capital. What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats? 2
What are the Equity challenges in the region? Equity is when the identity of a person has no detrimental effect on the distribution of resources, opportunities and outcomes for that person (Oakland’s mayor) The region has experienced fast economic growth… The % of people below international poverty line have decreased significantly Four of the world’s five most expensive cities are in Asia …but Equity for lower income brackets challenges remain… 10% Share of income increased by more than 15% China, Indonesia, Laos, India, Bangladesh and Sri Lanka richest Over past 2 decades (Source: Oxfam) 10% Share of income fell by more than 15% poorest Men Women 70‐90% Across Asia wages wages & higher % of informal The national minimum wage in many Asian countries – where it is paid – is on average a quarter of the amount required for a decent standard of living With skills being a main driver Highly skilled workers with more education see their incomes rise, while low‐skilled workers see their wages reduced (Source: ADB) 3
What are the economic challenges in the region? Economic crises risks Drivers of change in demographic and The labor market is changing fast socio‐economy In many industries and countries, the most in‐demand occupations or specialties did not exist 10 or even five years ago Informal sector is large (47%) Diversifying workforce Fourth industrial revolution is changing work Mobile internet, Big data, IoT, Sharing economy and robotics Globalization & Footloose capital Drivers of change in So… prepare for the Unexpected technology By one popular estimate, 65% of children entering primary school today will Source: Future of Jobs Survey World Economic Forum ultimately end up working in completely new job types that don’t yet exist And… be ready for significant Re‐skilling 4 WEF estimates that more than 50% of the workforce will require re‐skilling between now and 2022 (20% more than 6 months)
What are the major socio‐economic vulnerabilities of cities in our 100RC network? Social & Economic shocks and stresses are significant challenges in our Low‐Medium and Medium‐High income cities (20‐25%) including: Unemployment o Poverty o Economic inequality o From Lack of affordable & Informal housing o 100RC Inadequate education systems o strategies Financial / economic crisis o Shifting macro‐economic trends o Displaced populations / migrants o Ethnic Gender inequality o 5
Group C objectives Equity and Economic diversification in Cities What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats? 6
Expert Group Meeting on Governance & Capacity Development for Urban Resilience Equity and Economic diversification in Cities 23 November 2018 7
Group C objectives Equity and Economic diversification in Cities While cities in the region are extremely successful in building wealth; very few cities of them have provided secure livelihoods for all income groups , or have frameworks in place to help them to bounce back in case of economic crises , or changes in global labor markets . There are also new threats on the horizon: “Fourth Industrial Revolution”, trade wars and increasingly footloose capital. What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats? 8
Format of the session The 4 facilitators will give a brief “pitch” to the whole group to frame their theme 15 minutes – 3‐5 minutes and highlighting the rationale, why their issue is one of the most pressing in the per pitch region Facilitators will present a short deeper dive into the topic surfacing the key 5 minutes challenges and opportunities to be dealt with by the group. Each group will critically dissect challenges, opportunities and key practices. 30 minutes Each chair will present the key conclusions of the group work 3‐5 minutes A facilitated discussion, aimed at distilling the priority topics and approaches to be 15 minutes included in the final chapter outline. 9
What are traditional urban governance strategies? Cities are experienced in traditional approaches Building Skills Promoting new Enabling Supporting social Promoting formality & businesses infrastructure systems equity Education, skills Business development, access Access to affordable housing, Access to formal jobs, health Labor rights preventing discrimination training and to credit, incentives mobility solutions enabling care, welfare and family & too low salaries… employment search… strategies… access to work support mechanisms that opportunities… enable people to focus on Progressive Tax systems work… But those approaches are being challenged Ever‐changing work Job locations are evolving / Access to those services is Investments are very mobile in a environment Capital is very mobile changing very fast severely restricted by budget global economy (footloose capital) (digitalization, realities Booming sectors are evolving automation…) very fast How can cities built social and economic resilience in the face of these challenges? 10
How are cities addressing the challenge? In our 100RC strategies, we have found that most of the initiatives addressing equity & economic resilience involve City leadership & Engagement Most equity & economic initiatives focus on Urban Governance & Engagement 11
Example of resilience project The example of the Lighthouse project in Pune Challenges Disadvantaged communities (slums) Youth unemployment Partition between the government and the citizens Lack connection corporations Initiative Independence & Workplace competencies in youth Placement services Skills Market Place Adaptive Skills / Market alignment through Empowerment & Cohesion It is a public private partnership that empowers the Physical & Online Platform for collaboration among primary Government, Corporates, NGOs and Citizens to stakeholders of the city cooperate towards changing lives Industry‐led platform (CSR) 12
Example of resilience building Boston Network Exchange | Equitable and Resilient Cities 8 cities (US, Canada, UK) & Experts partners Share practices and tactics to promote racial equity outcomes across city systems and in the delivery of core services Open and Courageous Leadership is Critical to Tackling the Stress of Structural Racism in Cities Cities Need to Rely on their Existing and Diverse Array of Levers to Build Racial Equity & Resilience Communities Must Be Co ‐ Creators in Solutions to Forge New Paths to Equitable and Resilient Cities Practitioners need to pivot towards more systemic interventions at the neighborhood or city scale Data and Impact Measurement Are Critical but Must Look Beyond Numbers to Tell the Whole Story 13
The challenge: Drive equity and build economic diversification through urban governance What are the major socio‐economic vulnerabilities of How have cities built social and economic resilience in cities in the region? the face of these new threats? (15min) (20min) Skills Government long‐term planning & market regulation (regulatory, planning, assets) Businesses (attracting, creating…) Financial, fiscal & regulatory support for job creation Infrastructure (housing & transport) (budget) Supporting social systems Supporting education, social support systems for all Resilience to disasters & climate (convening, policy) Informality Co‐design & Partnerships Equity Use of analytics & indicators Others… Other levers / approaches… 14
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