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Successful Regeneration Strategies. Greg Clark Derry/Londonderry, May 2009. Today. Why and what of city strategy? How to do city strategy? The secrets of success!. Why do City Strategy?. The world is changing We can shape that change or Be victims of it.

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successful regeneration strategies
Successful Regeneration Strategies

Greg Clark

Derry/Londonderry, May 2009

today
Today

Why and what of city strategy?

How to do city strategy?

The secrets of success!

why do city strategy
Why do City Strategy?

The world is changing

We can shape that change

or

Be victims of it

features of effective city region organising
Features of effective city/region organising
  • One Plan; and strong story line. An investment prospectus.
  • Development agenda across whole City, not within one department or one agency.
  • Organised business leadership that is demanding and consistent and speaks to all orders of Government.
  • Customer orientation: employers, investors, visitors, entrepreneurs, traders, innovators, developers, infrastructure…
  • Focussed number of top priorities, sectors, and spaces.
  • Expanding capacity to implement. Range of financing tools.
  • Range of delivery vehicles that can attract external investment.
  • Problem Solving and Project Management orientation.
  • Strong economic agenda and partnerships with:

Local public sector, Local and regional Private Sector. Regional public partners, Provincial and Federal Governments, Global partners.

  • A collaborative leadership that leads, empowers, focuses on big picture and leverages resources to deliver.
why do regeneration strategies fail
Why do Regeneration strategies fail?
  • Strategy done for wrong reason /strategy has no focus or specificity
  • Lack of leadership and cross city working.
  • No communication, compacting, and conviction.
  • No assessment of local assets and distinctiveness.
  • No assessment of demand side opportunities.
  • No responsibility amongst competent bodies and no system for development.
  • Lack of tools to implement at scale/Lack of investment, capacity/resources.
  • Failure to solve problems as they arise.
  • No intention to implement.
  • No support from higher tier Govs, or neighbours.
what drivers
What drivers?

Globalisation and mobility

Population Change

Economic geography

Public finances

Knowledge economy and people

Political change.

Catalysts.

slide7
There are economic, political and social drivers of this recent wave of globalisation…
  • Falling Transport Costs
  • An important factor that has driven globalisation over the last 50 years is the significant falls in the costs of transportation.
  • Containerisation and haulage have dramatically increased the capacity and speed with which goods can be transported around the globe and domestically.
  • This has reduced the need for goods to be manufactured near to the consumer.
  • Recently there has also been significant falls in the cost of air travel allowing people to move easily around the world.
  • Free Trade/Geo-Political Shift
  • Since World War II and especially since the fall of the Soviet Bloc, there has been a strong commitment by many nations to free trade.
  • This is achieved in principle through reducing tariffs and other barriers to trade.
  • There have been numerous multi-lateral trade agreements between countries and overseen by the World Trade Organisation.
  • The establishment of the EU has allowed and encouraged the free movement of goods, services and capital between its member states.
  • Advances in Technology
  • There have been significant advances in information and communication technology over the last 20-30 years.
  • This has facilitated information exchange and has lowered transactions costs.
  • Combined with lower transportation costs, this has enabled firms to outsource different elements of their business to various locations and hence the growth of multinationals.
  • There is also a direct effect with new technology industries offering opportunities and a greater need for skills.
  • Mobility of People
  • Both internal and international migration have been drivers of globalisation.
  • The willingness and ability of people to move has provided an increasingly flexible labour market to meet the needs of growing sectors.
  • Internal both inter- and intra-regional migration has increased steadily over the last few decades.
  • International migration has also been on the increase, with indications suggesting that this trend will accelerate in the coming years, supporting continued globalisation.

2

barcelona emerge as a key cultural and knowledge hub in europe
Barcelona: emerge as a key cultural and knowledge hub in Europe

Past image:

  • In the 1980s, ‘Barcelona was not even on the map (Mateu Hernandez, CEO Barcelona Activa). It was suffering from the impacts of acute deindustrialisation. By 1986, unemployment stood at 22% and the city’s budget was tending towards the red.
  • Barcelona is now a key cultural and knowledge hub in Europe. Its quality of life offer makes it attractive to visitors and businesses alike.
  • Key pillars:
  • Global event hosting (Barcelona Olympics 1996)
  • Infrastructure improvements (opening Barcelona to the sea, Diagonal, telecommunications)
  • Re-zoning old industrial areas (Poblenou [email protected] Barcelona)
  • Sound fiscal policy

Strategy

process

slide11
International Students

Recreation

and Tourism

Work

Shopping and

Commerce

Investment

Migration

Events &

Culture &

Sport

Inward Investment

& Trade

City/

Region

Cities, Regions, and Mobility

medium term measures of city success
Medium term measures of City success?
  • Connectivity and space to grow.
  • Quality of Life and Place (eg Urban Design).
  • Skills of labour force.
  • Innovation and Creativity
  • Entrepreneurship.
  • Industrial structure.
  • Cost base of cities.
  • Transparency of business environment.
  • Identity and Brand Building.
  • Ability to implement strategic change.
longer term measures of city success
Longer term measures of city success?
  • Power of the City Identity and Brand.
  • Location and Access to growing markets.
  • Role of city in International Trade.
  • Power of influence of languages and regulatory/legal systems.
  • Depth of artistic, architectural and cultural endowment.
  • City leadership and regional co-ordination.
  • Success in adjusting to shocks and luck in being on the right side of conflicts.
  • Investment in the city from all sources (including higher tiers of government and PPPs).
  • Sustainability in terms of climate and environmental sensitivity.
  • Openness to International Populations.
how do city strategy
How do city strategy?

Make even more of what we are

framework for city growth
Framework for city growth

Global economy and Macro-economic framework

Markets

Feedback effects

Economic growth performance

Productivity

Use of resources

Population

Innovation & creativity

Industrial structure

Business ownership & mgt

Human capital

Environ mgt

Connectivity .

Drivers

Business environment & investment

Educational and research base

Land and physical infrastructure

Social/ cultural infrastructure & quality of life

Ecological base .

Governance structure .

Pre-conditions

what should city strategy do
What should city strategy do?
  • Unique value proposition and identity.
  • Honest and robust SWOT.
  • Set vision and define priorities.
  • Identify challenges to be addressed.
  • Translate into tangible actions.
  • Common purpose for stakeholders.
  • Leverage and mobilise resources.
  • Benchmark progress.
there are new ingredients appearing in city strategies that appear to be distinctive
There are new ingredients appearing in city strategies that appear to be distinctive
  • Internationalisation strategy.
  • Talent and population strategies. (eg Open-ness).
  • Economic collaboration.
  • Asset management.
  • Sustainable development and climate adaptation (environment and energy).
  • Investment strategies.
  • Business partnerships.
  • Regionalism and national success.
a leadership dividend
A leadership dividend ?
  • City development is not accidental.
  • 4 roles of city governments.
  • City Development is led by city governments BUT not like other local municipal services:
    • A market facing activity operating over longer timeframes
    • With broader geographies than municipal boundaries
    • Aimed at stakeholders who are often not local citizens/voters
    • An activity that needs public-public, public-private, and private-private co-ordination
    • Benefits from specialist skill sets and specialist bodies
    • Requiring wide collaboration, which demands
  • Exceptional leadership skills amongst local government leaders and their partners. LEADERSHIP TEAMS.
case studies
Case Studies
  • Valencia: Visitor Centre
  • Story and positioning
  • More than just an average visitor centre, Valencia is
  • now a global event host of significance and has a
  • growing and diversifying economy.
  • Development strategy
  • Investment in infrastructure and destination marketing have been two strategic aims.
  • Investment tools
  • Global event hosting (2007 America’s Cup-
  • €1 billion in infrastructure & F1-€70 million).
  • Key projects
  • Overground rail (AVE connection), Underground rail, Marina (€400 million)
case studies21
Case Studies
  • Krakow: Visitor Centre
  • Story and positioning
  • Sporadic economic growth and stagnant labour market of recent years. Today a premier Polish economic centre with a strong visitor economy.
  • Development strategy
  • Intense promotion of investment readiness and business friendliness.
  • Investment tools
  • Investment web portal, Special
  • Economic Zone, Real Estate Market
  • Guide, Investment Facilitation
  • organisations, PPPs.
  • Key projects
  • Nowe Miasto (250,000m2 mixed use centre), A4 Toll Road
case studies22
Case Studies
  • Glasgow: Transformation pole
  • Story and positioning
  • Classic de-industrialised city late 1980s. Economic trans-
  • formation and rebranding = recent economic and labour
  • market growth.
  • Development strategy
  • City rebranding, large scale regeneration projects, economic tertiarisation, event hosting
  • Investment tools
  • Private sector coercion, PPPs,
  • asset transfer from Council to
  • Housing Association
  • Key projects
  • Clyde Waterfront project, Glasgow Harbour, SECC
case studies23
Case Studies
  • Turin: Transformation pole
  • Story and positioning
  • Heavily de-industrialised following collapse of manufacturing.
  • Reinvention as an ambitious post-industrial city.
  • Development strategy
  • Re-branding, event hosting, communicating the development story, infrastructure-led development.
  • Investment tools
  • Event hosting, Invest in Torino Piemonte
  • Agency, PPPs, selling public assets.
  • Key projects
  • 2006 Turin Winter Olympics (65,000m2),
  • Lingotto transformation, Cross rail (15km underground tracks).
case studies24
Case Studies
  • Leipzig: Transformation pole
  • Story and positioning
  • Rationalisation of heavy industry following the
  • collapse of the Berlin Wall made the city productive
  • but at the expense of many jobs. Today one of the most investment attractive centres in Germany
  • Development strategy
  • Encapsulated in City Masterplan (2006), Infrastructure investment,
  • Investment tools
  • Public sector direct investment, PPPs.
  • Key projects
  • A34 Orbital Motorway, InterCity Rail link,
  • Leipzig City Tunnel
can smaller cities do it
Can smaller cities do it?

Yes.....

Bergamo, Sitges, Brighton, Lucca, Trento, ...

What matters?

  • Complementarity and co-operation with larger centres
  • A key role in the regional space and good connectivity
  • Quality of life
  • Attractiveness and openness to people
  • A clear simple vision and good communication
build support for city development
Success.

Rising tax base with lower taxes.

Employment and incomes for citizens and choice of jobs.

Resources for social and environmental programmes.

Multiple distinctive and attractive locations.

Managed growth and investment.

Increased global connectivity.

Strong collaborations.

Failure

Dwindling tax base with high taxes.

Reduced resources for other programmes.

Environmental degradation.

High unemployment and high emigration.

Disinvestment.

Failed projects and initiatives. Bickering.

Reduced global connectivity.

Unmanaged decline.

Build Support for City Development
regional integration
Regional Integration
  • Glasgow and Edinburgh
  • Seattle and Vancouver
  • Baltmet
  • Quatropole
  • Milan, Turin and Genoa
  • Tshwane and Johannesburg
  • Buffalo and Niagara
  • San Diego and Tijuana
  • The Pan -Pearl River Delta
  • Cities of the Yellow Sea Rim
inclusion initiatives for economic inclusion
Inclusion: Initiatives for economic inclusion.
  • Labour market transition.
  • Informal economy strategy.
  • Investment instruments with local reach.
  • Community asset building.
  • Settlement and conversion programmes.
  • New forms of entrepreneurship.
  • Procurement and supply chain value.
  • People, places, and markets progressing together. Place equity.
  • Corporate responsibility and tackling discrimination.
  • Investment in children.
investment 10 principles for city investment
Investment: 10 principles for city investment
  • Smart finance for smart cities and regions: getting the fiscal relationships with higher tiers of Government right
  • Promote active private sector leadership in city & regional investment
  • Metropolitan finance for metropolitan amenities
  • Sharing the benefits of growth locally
  • Flexibility in public funding to enable private co-investment
  • A new approach to public assets
  • Financial innovation in public and private sectors
  • Long term market building by the private sector
  • Focus on the quality of the propositions not on the supply of finance
  • Build capable specialist intermediaries
the secret of city strategy
The Secret of City Strategy

Proceed with confidence....

the most effective city strategies appear to be based on
The most effective city strategies appear to be based on:
  • Distinctiveness of place and unique advantages and characteristics
  • Alignment with national goals
  • Complementarity and functionality with neighbours
  • Engagement with international opportunities and connection to future drivers
  • Influence the behaviour of others
  • Governance and competitiveness
  • Policy and Investment
  • Coherent messages for different audience

Vision, Plan, Prospectus, Marketing.

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