WHAT MAKES CITIES GROW

The pace of global urbanization is one of the greatest challenges that governments face in the
21st century. Over half the worlds population now lives in urban areas, and urban populations
are forecasted to increase by roughly 2.3 billion between 2014 and 2050 to reach 66% of the
global population (UN DESA 2014).
Analysis suggests that under business as usual economic growth, three broad groups of cities
will play a particularly important role in the global economy and climate over the next two to
three decades: Emerging Cities (fast growing middle income cities in countries such as China
and India), Global Megacities (middle and higher income cities with populations over 10
million) and Mature Cities (higher income cities where carbon emissions per capita are already
high). These three groups, representing only 468 cities in total, will account for over 60% of
global income growth and 50% of energy-related greenhouse gas emissions growth between
2012 and 2030 (Floater, Rode et al. 2014)
Countries that are highly urbanized tend to have higher incomes, more stable economies,
stronger institutions and are better able to withstand the volatility of the global economy (UN,
2007). With cities growing in significance and acting as hubs of innovation and economic
activity, it is extremely important for us to understand the dynamics of growth of cities. What are
the factors that enable a city to grow? What type of policies can facilitate growth of cities? These
are the questions that need to be answered in our quest for smart and sustainable cities.
Cities bring consumers, workers and businesses together in close proximity. The result is
specialization. Highly-educated workers gravitate to cities because there is a high concentration

of businesses, which then specialize. The presence of a car manufacturer leads to other
companies specializing in microchips for cars, for example.
This results in cost reductions. But to maintain these workers and businesses a city must provide
strong infrastructure and a high standard of living. And cities have problems like unemployment,
and high CO2 emissions from transport and housing. Smart growth means finding innovative and
cost-effective solutions to these problems.
Cities today face tough economic times. For growth they must create jobs, and not just any old
jobs. They have to compete with other cities to attract the best talent, and to do that they need
good infrastructure, and therefore innovation.
According to Martin Powell, Cities like London and the big cities are where people find
employment. Its very important for cities to protect that employment and to find the kind of
industries that are going to keep those cities remaining attractive, while protecting the quality of
life.
Cities are setting very tough targets for climate change. They are experiencing unprecedented
growth in terms of urbanization. I would say the big cities; the very big cities are taking care of
this quite successfully. But, the mid-size cities are the ones that are going to need the help.
He further elaborates the concept of smart cities. We see cycles of technological innovation,
from the railway to the motor car, and the Smart City now is the next cycle where were going to
get lots of investment to enable todays infrastructure. You have to invest in transport and energy
infrastructure today because these projects take 20 to 30 years to show real benefits. Through
better data, and better communication infrastructure we are able to deal with some of the short
term problems, buying valuable time for long term investment.

The Polish city of Gdynia on the coast of the Baltic Sea is an interesting case study. It is at the
heart of a new trolley-bus revolution in Europe. Thanks to two projects funded by the European
Union, the city has completely revamped its transport network across the entire region, including
the cities of Gdansk and Sopot.
Trolley-buses make public transport cheaper than using the car. Piotr Malolepszy, the president
of PKT, explained: Regarding market share, based on the number of passengers using public
transport, we estimate it is almost a third of all passengers. We operate the trolley-buses mainly
in the centre of Gdynia and they are very popular.
Jan Szymaski, the director of the Department of Pomorskie Regional Programmes, added:
Were trying to build the whole system to facilitate connections for people going to work in
offices and factories, so they can use public transport; trolley-buses, trams, and also bicycles.
Faster journey times, increased comfort, and reduced environmental impact all improve the
quality of life in this city.
Storpe (2008) highlighted the role of specialization, human capital, and institutions in the growth
of cities. Floater (2014) talks about the four elements of coordinated urban governance that is
essential: (1) multi-level governance with effective coordination of national, regional and city
policies; (2) city leadership and financial authority; (3) transparency and accountability; and (4)
policy integration at the local level. Municipal governments can also use international and
regional networks of cities to transfer knowledge and innovation more effectively.
There are a multitude of factors that can either make cities grow or decline.