How To Make A City Great
How To Make A City Great
How To Make A City Great
a city great
A review of the steps city leaders around
the world take to transform their cities
into great places to live and work
Shannon Bouton
David Cis
Lenny Mendonca
Herbert Pohl
Jaana Remes
Henry Ritchie
Jonathan Woetzel
How to make
a city great
Half of the worlds inhabitants3.6 billion
peoplelive in cities. The proportion is the
highest in mankinds history, and it is growing
fast. By 2030, 60 percent of the population5
billion peoplewill be city dwellers. The ways
in which cities develop and cope with such
rapid urbanization are of huge importance to
citizens. But they matter to others too. Cities are
the main source of global economic growth and
productivity, and they account for most resource
consumption and greenhouse gas emissions.
Urban development therefore matters to the well-
being of all the worlds occupants.
The formidable task of managing growing cities
in ways that support and drive economic growth
while reducing pollution and safeguarding
resources led McKinsey & Company to launch, in
2011, the Cities Special Initiative (CSI). The aim
is to help those in the public, social, and private
sectors to make informed decisions about city
development strategies, and to help them build
the skills to implement those strategies. This is
not a new space for McKinsey. Research by the
McKinsey Global Institute into the economics of
urbanization, collaboration with think-tanks such
as the Urban China Initiative, and client work with
city leaders, private developers, and city service
providers all testify to McKinseys engagement in
urbanization. This latest report by the CSIHow
to make a city greatexamines what it takes to
advance a citys performance.
Various studies have looked at how cities
perform in economic, environmental, and social
terms, and ranked them accordingly. Such
studies help us to understand the elements of
a great city. But they do not tell us what their
leaders do to make them great. Moreover, an
absolute measure of performance risks masking
the efforts that have helped some cities to rise
from low down the rankings.
This research starts to fill that gap. Through
analysis, case studies, and interviews, we
sought to learn what mayors and other leaders
do to make their cities better places in which to
live and work. The findings make clear there
is no single method. Rather they suggest that
successful leaders find a balance between three
areas. They achieve smart growth, which means
securing the best growth opportunities while
protecting the environment and ensuring that all
citizens enjoy prosperity. They do more with less.
And they win support for change by delivering
results swiftly. The report describes some of the
managerial practices they deploy.
We are grateful to the city and community leaders
who talked to us in detail about their visions,
philosophies, successes, and failures. Their
experiences form the basis of our findings
and, we hope, will inform others in their task of
improving the cities in which so many live, and
upon which so many more depend.
Jonathan Woetzel
Director, McKinsey & Company
Foreword
How to make a city great
is written by experts and
practitioners in McKinsey
& Companys Cities
Special Initiative along
with other McKinsey
colleagues. To send
comments or request
copies of this publication,
contact us at:
[email protected]
Copyright 2013
McKinsey & Company.
All rights reserved.
This publication is not
intended to be used as the
basis for trading in the
shares of any company or
for undertaking any other
complex or significant
financial transaction with-
out consulting appropriate
professional advisers. No
part of this publication may
be copied or redistributed
in any form without the
prior written consent of
McKinsey & Company.
Contents
Introduction
Achieve smart growth
Do more with less
Win support for change
Acknowledgements
1
5
19
27
35
vii
How to make a city great
McKinsey Cities Special Initiative
1
What makes a great city? It is a pressing
question because by 2030, 5 billion
people60 percent of the worlds
populationwill live in cities, compared
with 3.6 billion today, turbo-charging the
worlds economic growth.
1
But for the leaders
who govern cities, the challenges are tough.
Those in many developing nations have to
cope with urbanization on an unprecedented
scale. Those in developed nations, where
growth prospects are weaker, wrestle with
aging infrastructure and stretched budgets.
All are fighting to secure or maintain their
competitiveness and hence the livelihoods
of residents. All are conscious of the quality
of life enjoyed by present citizens. And all
are aware of the environmental legacy they
will leave citizens of the future if they fail to
find more sustainable, resource-efficient
ways of expanding their local economies and
managing their cities.
A citys performance has to be measured in
a way that reflects all of these concernsthe
strength of the economy, social conditions,
and the environment. Various studies
have looked at these three measures of
performance either separately or together,
and ranked cities accordingly.
2
But while such
studies can help us understand the elements
of a great city, they do not tell us what city
leaders actually do to make their cities great.
What drives a citys performance? Moreover,
an absolute measure of performance can
overlook the fact that each city has a different
starting point; a relatively low ranking for a
city that had an extremely low starting point
would mask the efforts and innovations that
helped such a city make significant progress.
Therefore, to understand performance, it
is important to consider not only current
measures but also the trajectory of change.
With this in mind, we undertook the
research presented in this report. We
developed and analyzed a comprehensive
database of urban economic, social, and
environmental performance indicators,
interviewed 30 mayors and other city leaders
in city governments on four continents, and
synthesized the findings from over 80 case
studies that sought to understand the steps
city leaders had taken to improve a whole
range of processes and services, from urban
1 United Nations,
Department of
Economic and Social
Affairs. World
Urbanization
Prospects - The 2011
Revision. http://esa.
un.org/unup.
2 For example, the
Mercer Quality of
Living Index, the
Siemens Green
City Index, and the
McKinsey Global
Institutes Urban
Performance Index.
Introduction
Exhibit 1
Cities can
transform
themselves into
great places to live
and work by doing
three things
Adopt a strategic
approach
Plan for change
Integrate environmental
thinking
Insist on opportunity
for all
Assess and manage
expenses rigorously
Explore partnerships
Introduce investment
accountability
Embrace technology
Craft a personal vision
Build a high-
performing team
Create a culture of
accountability
Forge stakeholder
consensus
Achieve smart growth Do more with less Win support for change
2
the research
This report is the result of extensive research conducted over the course of a year by McKinsey teams around the world.
The research reviewed data measuring city performance along economic, environmental, and social dimensions. Three
sources were particularly helpful in this respect: the Mercer Quality of Life Index, the Siemens Green City Index, and
MGIs Urban Performance Index. We also drew on MGIs Cityscope databasewhich includes data on demographics,
household structure, and income, and national economic and demographic dataand on Chinas 2010 and Indias 2011
censuses.
Simultaneously, we conducted extensive interviews with city leaders, other public servants, and community leaders in
over 30 cities around the world to capture their experience, learning, and advice. We added to this by examining more
than 80 case studies of cities that had improved their performance, developed from literature, the news media, and Web
searches. While the report leans heavily on the data and other information collected, the synthesis and prioritization of
the insights are ours.
This report is the most recent in a growing body of work by McKinsey and the MGI on cities and urbanization. For further
reading on the topic, please see the following reports:
Preparing for Chinas urban billion (March 2009)
Indias urban awakening: Building inclusive cities, sustaining economic growth (April 2010)
Urban America: US cities in the global economy (April 2010)
The urban world: Mapping the economic power of cities (March 2011)
Building globally competitive cities: The key to Latin America (August 2011)
Urban world: Cities and the rise of the consuming class (March 2012)
Infrastructure productivity: How to save $1 trillion a year (January 2013)
These and other articles on urban development are available on mckinsey.com.
About
planning to financial management and social
housing (see sidebar About the research).
Whatever their starting positions, cities can
change. Singapores rise from a colonial harbor
to a world-class city in just a few decades and
New Yorks turnaround from the economic
decline of the late 1960s and 70s are just two
examples. The wide range of measures city
leaders in our research used to drive change
makes it hard to assess the impact of each
measure quantitatively. Yet some common
themes emerge. Leaders who make important
strides in improving their cities, no matter their
starting point, do three things really well: they
achieve smart growth, do more with less, and
win support for change (Exhibit 1, previous
page). This report describes some of the
managerial practices that enable leaders to do
these things successfully.
3
How to make a city great
McKinsey Cities Special Initiative
4
How to make a city great
McKinsey Cities Special Initiative
5
All city leaders want their local economies to
grow. Economic growth, however, does not
automatically deliver a better quality of life for
citizens and can often harm the environment.
Indeed, many cities find they have to take
expensive remedial action to fix problems
caused by growth itself. It is better, then, not
to assume that all growth is good, but to learn
what smart growth looks like.
Smart growth depends upon a strategic
approach that identifies the very best growth
opportunities and nurtures them, planning so
the city and its surroundings can cope with the
demands growth will place on them, integrating
environmental thinking, and ensuring that all
citizens enjoy their citys prosperity.
ADOPT A STRATEGIC APPROACH
While all city leaders look for ways to promote
their citys prosperity, what marks the best
among them is the strategic manner in which
they pursue that goal. Simply offering tax
breaks to entice newcomers or deciding
without sufficient analysis that the citys future
lies in the latest nascent industry, be it clean
technology or biotechnology, is unlikely to
have much impact. A more rigorous approach
is required to identify the citys best growth
prospects. This is not to suggest that city
governments should get overly involved in
business. Rather, their leaders vision for the
city should be colored by a sound assessment
of where the citys competitive advantages
lie, so they can identify potential clusters of
companies that can power growth. Cities
must then support growth by making targeted
investments and offering a client service to
businesses to help them flourish.
Identify competitive clusters
Different cities have different starting points.
But each needs to decide which sectors can best
support growth and focus on those. Economic
growth is likely to be stronger if clusters of
companies from a sector or sectors develop.
3
Their physical proximity to one another will
lower supply costs, improve R&D collaboration,
and assist the building of an appropriately
skilled workforce, among other benefits.
A first step therefore is to identify a citys
competitive advantages. The exercise might
reveal that existing clusters have potential
to be strengthened or that new ones can be
nurtured. Cities in the southeastern United
States, including Atlanta, Savannah, and
Nashville, have succeeded in attracting foreign
automakers because of their core strengths:
talent, proximity to centers of innovation and
higher education, good transport, and low
input costs. London, meanwhile, has succeeded
in forming a new high-tech cluster known as
Tech City as a result of a national government
initiative to foster growth. Within three years in
a small part of the citys East End, the number
3 Michael Porter,
Location, competition,
and economic
development: Local
clusters in a global
economy, Economic
Development
Quarterly, 2000,
Volume 14, Number 1,
pp. 1534.
Achieve
smart growth
of digital and creative companies in the cluster
grew from 11 to 300.
Invest to support growth
Targeted public-sector investment may be
required to attract business to the city. As
the city of New York pointed out in its 2011
Sustainability Plan, Todays mobility of people
and capital has created fierce competition
among cities. Were competing for the best
ideas and the most capable workforce. To thrive
economically, we must create a setting where
talented entrepreneursand the businesses
they growwant to be. In response, the city
has set no fewer than 400 targets to be met by
the end of 2013 to improve public safety, green
areas, mobility, and much more.
Such improvements require investments of
varying degrees. Dubai has invested hugely
in infrastructure to transform itself into an
international business and tourist center that
is now home to the worlds largest port and
the offices of 120 of the Fortune Global 500.
The activities thus generated account for 25
percent of Dubais annual GDP and for 20
percent of foreign direct investment for the
entire United Arab Emirates. On a different
scale but no less targeted in its intent, the state
of Georgia in the United States spent $14.5
million to build a job-training facility in West
Point for would-be automotive workers to help
secure an investment by car manufacturer Kia.
According to Chris Cummiskey, commissioner
of Georgias Department of Economic
Development, Our people went over to Korea
to see how [Kia] runs a manufacturing plant.
Then we replicated that, set up an onsite training
center, sorted through 30,000 applications,
found the best, and trained more than 1,000
people. On the first day, the company opened at
100 percent efficiency.
4
The job-training facility
has since trained all 3,000 employees hired by
Kia at its plant in West Point.
The city of Bogots investment to attract IT
companies was on a smaller scale but no less
important to attracting business. Lack of
English-language skills was perceived as an
obstacle for the IT sector, so we worked with
the Economic Development Secretary to
tackle it, said Adrianna Suarez, director of the
citys investment promotion agency, Invest
in Bogot. In 2008 we developed a program
4 Georgia Department
of Economic
Development,
Georgia quick
start, Competitive
Advantages:
Workforce, http://
www.georgia.
org/competitive-
advantages/
workforce/Pages/
workforce-
training.aspx.
6
How to make a city great
McKinsey Cities Special Initiative
7
called Talk to the World to certify English-
speaking people. Right now, 10,000 people are
certified as English speakers, helping investors
to find talent.
Think client service
Cities can help attract companies and
organizations to their chosen clusters by holding
regular conversations with industry leaders;
forging connections between businesses,
investors, and talent; and organizing road
shows and conferences. Mayors can play a
leading role, using their convening power and
connections and leading trade delegations that
travel to target regions. Mike Bell, mayor of
Toledo, Ohio, in the United States, succeeded
in attracting Chinese companies to his city
even though Toledo ranks 182nd in Forbess
2012 Best Places for Business and Careers.
The mayor pitched Toledos advantages
affordability, manufacturing know-how, and
central location at the intersection of two major
interstate highwaysand made three official
visits to China with this pitch. His reward
was Chinese investment worth more than
$6 million, a new metalworking plant for a
Chinese company, and the promise of further
investment worth $200 million.
5
But it is not only about shouting a citys wares.
Key to successful economic development
campaigns is the attitude that investors and
businesses are the citys clients and the city
must do what it can to help them thrive. Our
main question is, how can we, the city, serve
them well? commented Marcelo Haddad,
president of the investment promotion agency
Rio Negcios in Rio de Janeiro. Bogots
investment promotion agency provides
free investment support services including
fact-finding visits to the city, administrative
support to apply for permits and comply with
regulations, and programs to develop a trained
workforce. Between 2010 and 2011, foreign
direct investment in Bogot increased by 27
percent. The UK government made legislative
changes to entice companies to Londons
Tech City, making it easier to issue visas to
those running entrepreneurial companies and
updating intellectual-property rights laws.
5 America and China:
Working partners,
The Economist,
August 25, 2012,
http://www.
economist.com/
node/21560875.
Some cities engage still more deeply,
believing that an important way to drive a
citys economic growth is to home in on local
companies that demonstrate high growth
potential, as opposed to supporting all small
businesses or focusing only on trying to attract
new ones. The Edward Lowe Foundation, a US
organization that promotes entrepreneurship,
sees this as an often-overlooked element of
what it calls economic gardening. It might
entail connecting high-growth companies
with those that can offer strategic advice on
how to develop new markets or refine their
business models, for example.
6
PLAN FOR CHANGE
Smart growth means planning for what lies
ahead. The world has many examples of cities
that have expanded rapidly without any kind
of planning. The result is chaotic at best, but
too often it also impedes further development
and is detrimental to citizens quality of life
and the environment. City leaders therefore
need to be forward looking, planning for
growing and changing populations and the
impact on transportation, schools, hospitals,
and many other aspects of city life. They also
need to make sure those plans can be adapted
over time to reflect the changing needs of the
city. The most effective cities adopt a regional
perspective and make the planning process
inclusive and flexible.
Adopt a regional perspective
Good city leaders think about regional
growth, not just city growth, for as the
metropolis expands, they will need the
cooperation of surrounding municipalities
and regional service providers. Without it,
the result will likely be local competition
and conflict, over- or underinvestment in
infrastructure because of concerns about
who pays for what and who benefits, and
confusion over roles and responsibilities.
An example of the need for cooperation
is Chinas Pearl River Delta region,
which has five competing international
airports in Guangzhou, Shenzhen, Zhuhai,
Macau, and Hong Kong, all within an
area of 39 square miles (100 square
kilometers). The consequencesdelayed
flights, extra fuel costs, and concerns
6 Edward Lowe
Foundation,
Economic gardening:
An entrepreneur-
oriented approach
to economic
prosperity, 2012,
http://edwardlowe.
org/edlowenetwp/
wp-content/themes/
implementprogram/
downloads/
infosheets/
EconomicGardening.
pdf.
8
How to make a city great
McKinsey Cities Special Initiative
9
about safetyled to an agreement in
2012 aiming for more collaboration.
A regional planning model helps overcome
such conflicts and so promotes growth not
only in the city but also in the entire region.
In Germany, the city-state of Berlin is
surrounded by the state of Brandenburg. The
two states inevitable impact on each other
has shifted their relationship from informal
collaboration to more formal arrangements,
to the extent that they have a significant
number of joint authorities, courts, offices,
institutions, and agencies. One such joint
organization, the Joint Spatial Planning
Department, lays out land use policies and
transportation guidelines for the whole
region, which are followed by the two states
own planning organizations. Similarly,
the US city of Portland, Oregon, set up a
Metro Council to oversee regional planning.
Cities and counties in the region have
representation on the council, but all have
given up much of their own planning power
in order to meet regional planning goals with
the engagement and support of communities
throughout the area.
Make planning an inclusive process
City planning needs to be a dialogue between
parties, not an outcome dictated by any single
party. Top-down planning alone, by a remote
regional or metropolitan authority, cannot
hope to address local concerns adequately,
while a bottom-up approach led by smaller
bodies risks unnecessary duplication and
overlap, particularly in transportation and
utility services. Smart growth therefore
ensures a planning process that combines the
two, and good planners are adept at managing
the process that enables it.
The French region of Ile de France (essentially
the Paris metropolitan area) adopted this
approach in 2008, when municipal and
county leaders came together to develop
a regional plan that set targets to be met
by 2030. A framework coordinates public
policies on transportation, open space, land
use, social inclusion, and housing; regulates
local plans (for example, by prescribing
density requirements); and oversees the
location of regional infrastructure and
transport. The views of local associations and
public institutions have resulted in thousands
of modifications. San Franciscos approach
to planning also takes care to involve citizens.
The Trans Bay Redevelopment Project, for
example, appointed a citizens advisory
committee and has held three large facilitated
workshops to gather local input on the design
of the development.
Keep it flexible
Cities are increasingly adopting flexible urban
plans that serve as frameworks into which they
fit projects proposed at a local level. These
plans are akin to a set of guiding principles to
help planners to assess new proposals, rather
than documents that determine the future
once and for all. As a result, they evolve along
with the citys changing needs while ensuring
that the city continues to make progress
toward long-term targets.
This kind of flexibility requires a great deal of
skill, and cities that excel at urban planning
have multidisciplinary planning departments.
San Franciscos planning department works
in this flexible way. The department, which
employs some 100 people skilled in areas
including urban planning, economics, and
transportation, has a live plan based on
principles that promote the citys vision of
protecting, preserving and enhancing the
citys economic, social, cultural and aesthetic
values. The plan does not, however, specify
precise usages for specific plots. Project
proposals are instead assessed case by case
with the principles in mind.
INTEGRATE
ENVIRONMENTAL THINKING
The way city leaders integrate the
environment into economic decision making
is vital to smart growth. Already, cities
produce 70 percent of global greenhouse gas
emissions, largely from energy consumption
in buildings and transportation.
7
This takes
a heavy toll on the local as well as global
environment. Traffic congestion, for example,
raises the cost of doing business, while the
air pollution it generates threatens citizens
health. Lack of regard for sustainability could
threaten long-term growth prospects too, as
resources become scarcer.
8
The optimum approach to environmentally
aware growth recognizes the costs of
degrading the environment and so integrates
environmental goals into the planning
process. Vancouver, for example, has a
Greenest City Action Plan that sets targets
for 2020. In common with Copenhagen,
Europes most sustainable city according
to Siemens European Green City Index,
it aims to become carbon neutral (see
sidebar Copenhagen: Building for the
environment, page 12). Seattle has set a goal
of zero waste to landfills, as have the Belgian
region of Flanders, Kamikatsu in Japan,
and Bath in England. Planning and building
infrastructure in an environmentally
conscious way and using a combination
of pricing, regulations, and information
campaigns to encourage citizens to safeguard
resources can help achieve such goals.
Plan and build green infrastructure
At the current pace of urbanization, the
worlds cities combined will add 65 million
inhabitants a year between 2010 and 2025,
according to MGI research.
9
The resulting
demand for infrastructure will mean that
each year, for example, Indias cities will
add floor space equivalent to the entire
residential and commercial square footage
of the city of Chicago. Chinas cities will add
2.5 times that amount. Sustainable growth
will therefore depend upon investment in
infrastructure that reduces emissions, waste
production, and water use, as the way we build
and renovate our cities will determine their
ecological sustainability for decades to come.
Improving existing infrastructure, building
green districts, and making the most of scarce
land resources by building high-density
communities can all help.
Improve existing infrastructure. Most
cities have opportunities to reduce
the environmental impact of existing
infrastructure. The 2011 retrofit of New
Yorks Empire State Building transformed
the approximately 80-year-old building into
a landmark of green construction and placed
it in the top 25 percent of US commercial
office buildings in terms of energy efficiency.
The retrofit implemented cutting-edge
technologies, including windows, automated
7 UN-Habitat, Cities and
Climate Change - Global
Report on Human
Settlements 2011. http://
www.unhabitat.org.
8 McKinsey Global
Institute, Resource
revolution: Meeting
the worlds energy,
materials, food, and
water needs (November
2011), mckinsey.com.
9 McKinsey Global
Institute, Urban world:
Mapping the economic
power of cities (March
2011), mckinsey.com.
10
How to make a city great
McKinsey Cities Special Initiative
11
monitoring and controls systems, and high-
efficiency cooling equipment. The $13.2
million invested in energy efficiency reduced
annual energy consumption by 38 percent,
generating a payback period of 3.5 years and
reducing greenhouse gas emissions by 100,000
metric tons over 15 years.
10
Many cities have sought to tackle traffic
congestion and local air pollution problems by
reserving stretches of road space for buses only.
Istanbul, faced with delays in the construction
of its subway system, dedicated 26 miles
(nearly 42 kilometers) of existing road lanes
to a new bus rapid-transit system. Buses in the
system now travel the route approximately
twice as fast as cars and arrive at 30- to
45-second intervals, giving continuous service
to some 620,000 passengers a day.
11
Bogot,
Delhi, and Pittsburgh are among the many
other cities that have introduced bus rapid-
transit systems over the past two decades.
Build green districts. Many cities seek to
improve the energy efficiency of individual
new buildings and infrastructure by
requiring that they meet emerging green-
building standards. Some go further, seeking
to build entire green districts. There is
no single definition of what constitutes a
10 Johnson Controls, Empire
State Building, Products
and Solutions: Building
Efficiency, http://www.
johnsoncontrols.com/
content/us/en/products/
building_efficiency/esb.
html.
11 P. Alpkokin and M. Ergun,
Istanbul Metrobs:
First intercontinental bus
rapid transit, Journal of
Transport Geography,
2012, Volume 24, pp.
5866, available at http://
www.sciencedirect.
com/science/article/pii/
S0966692312001548.
12
Building for the environment
The city of Copenhagen has invested substantially in green infrastructure and is now ranked the most
sustainable city in Europe, according to Siemens European Green City Index.
Energy. Each district has a centralized heating system that takes waste heat from electricity
generation and uses it to heat buildings.
Transportation. The city has a world-class infrastructure for non-automobile transportation,
including an extensive and expanding subway system, bus networks, and a suburban rail system.
As a result, all residents live within about a quarter mile (400 metres) of public transportation.
Copenhagen is also known for its bicycling culture and the infrastructure that supports it. There are
241 miles (388 kilometers) of cycling routes within the city, and 50 percent of commuting trips are
by bicycle. A traffic system, called Green Wave, is being designed to ensure that cyclists will never
encounter a red light on their commute to and from work. In addition, the city aims to facilitate the
rollout of electric vehicles by installing charging infrastructure.
Water. In 2001, Copenhagen embarked on a scheme to replace its entire water main network
over the course of the century, upgrading 1 percent of the network, or 5.6 miles (nine kilometers),
each year. Water leakage is now 5 percent, compared with an average of 20 to 25 percent for most
European cities. The city has also modernized the sewage system by building rainwater reservoirs,
which store wastewater during storms until there is capacity in the sewage system, and systems to
clean the water and minimize nutrient salts and heavy metals.
Waste. As well as regulations, incentives, and information campaigns to encourage waste diversion,
the city has developed a pilot plant that separates household waste into organic and inorganic
materials and produces biogas and bioethanol. These are used as an energy supply for the citys
district heating.
Neighborhoods. Copenhagen is piloting carbon-neutral neighborhoods with energy-efficient
residential and commercial buildings, sustainable energy networks including renewable-energy
installations, and low-emission transportation systems.
Copenhagen
How to make a city great
McKinsey Cities Special Initiative
13
green district, although most aim to optimize
resource consumption at scale. Exhibit 2
(overleaf) offers examples. Transit-oriented
designs, microgrids, district heating and
cooling systems, and rainwater management
systems are all features of a green district.
In some emerging cities where there is
relatively little existing infrastructure, city
leaders have the chance to build sustainable
infrastructure from the outset at relatively low
additional cost, surpassing the environmental
credentials of even the most eco-friendly of
todays older cities. Some may even decide to
build entire eco-cities.
Build high-density communities. Land
consumption is inevitably a concern when
considering a citys growth, as land is
becoming a scarce resource, and competition
for it intense. This dictates the approach
to urban planning of the mayor of Rio de
Janeiro, Eduardo Paes. Its not about
extending boundaries, he says. Its about
regaining lost spaces. Singapore approaches
the problem methodically, identifying
plots that are underutilized with a view to
encouraging high-density development
wherever possible. New York encourages
the refurbishment of existing housing units,
sometimes splitting them into smaller units
or studios and building on rooftops.
High-density communities are a response not
only to land constraints but also to concern
about the environment, as they tend to use
fewer resourcesallowing people to walk
rather than use cars, for example. They also
tend to reduce unit infrastructure costs.
However, high-density areas need to be close
to good public transportation, so their success
usually requires the expansion and upgrading
of mass-transit systems. The city of Chicago
decided to increase the concentration of
new housing and commercial developments
around existing or extended rail lines. Its Go
to 2040 plan set the ambition that 75 percent
of residents homes should be within walking
distance of public transit by 2040.
14
Chengdu, Chinas westernmost megacity, is
building a prototype city designed for 80,000
residents who will live and work within a half-
square-mile circle, where any one location
will be no more than a 15-minute walk away
from any other. The plan aims to cut landfill
by 89 percent, wastewater by 58 percent, and
energy use by 48 percent compared with a
typical Chinese city the same size, reductions
largely facilitated by the citys design. While
the outcome remains to be seen, Chengdus
ambitious sustainability goals may prove to be
a model for future investment in environmental
infrastructure in China and beyond.
Safeguard resources
A mixture of pricing mechanisms
(both penalties and incentives),
information, and regulation can be used
to improve the use of resources.
Pricing. Zurich uses pricing to reduce the
volume of household rubbish, requiring
residents to dispose of rubbish in garbage
bags that cost around $4.25 each. As a result,
household rubbish has decreased by 40
percent, with the average Zurich resident
generating 25 percent less waste than the
average European. Singapore uses pricing
to tackle road congestion. Its electronic
road-pricing system, recognized as one of
the worlds most innovative, sets a variable
congestion charge according to prevailing
traffic conditions. As well as reducing
congestion and emissions by encouraging
drivers to take less-congested roads, join
Exhibit 2
Technologies
deployed in self-
defined green
districts
Completed
In progress
1 Transit-oriented development
2 Expected population on completion
Source: Literature searches; interviews
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