Multinational auditing company PricewaterhouseCoopers (PwC) prepared an overview of "Cities of opportunity 2014", analyzes the development of 30 leading cities in the world, which is the financial, commercial and cultural centers of global importance. First place in the ranking of leading cities took London, Moscow 21st place, just behind Shanghai.
"Cities of opportunity 2014" is the sixth annual edition of research, the purpose of which is to inform heads of municipalities, companies and urban residents seeking to improve economic conditions and quality of life in the city, on trends in the development of the largest cities in the world. The study reflects a wide range of factors contributing to successful urban development and increase the vitality of urban communities. This release presents a comparative analysis of 30 cities in the world. Indicators of development can be used for a better understanding of which policies should be developed for better functioning cities, and what actions need to be taken to implement this policy.
The report is based on publicly available information that has been thoroughly studied and analyzed. When the report used three main sources: multilateral international organizations such as the world Bank and the international Monetary Fund, national statistical organizations and commercial data providers. Data were collected in the period from the second half of 2012 to the first quarter of 2014. In most cases, the indicators used in the review, are 2013. This release also included the results of a survey of more than 15 thousand specialists of PwC in 30 cities covered in the study.
The ratings of the top 30 cities on specific parameters presented in the review in descending order — from highest (best) to lowest (worst). Then the cities were assigned a score from 30 (the highest) to 1 (the lowest). After all 60 parameters were accordingly estimated and ranked on a scoring system, the researchers divided them into 10 categories. In each category scores for a given parameter were summed to produce an overall indicator. The result is composed of the rankings table reflects the comparative performance of all 30 cities. The research findings are intended not so much to evaluate, how to discover the possibilities of improving urban life from the point of view of commercial organisations, government bodies and the population.
The text of the survey "Cities of opportunity 2014" in English is presented in Annex (see PDF file). The full text of the report in English, including detailed video interviews with leading experts, published on the website of the project: http://www.pwc.com/cities.
In the ranking of leading cities in the world 2014 Moscow is ranked 21st out of 30 possible. Although in the two years since the last research, Moscow lost one position in the ranking, it has demonstrated high performance in several critical areas, as well as stable growth of the single variables in the three key categories of development: transportation and infrastructure; the ease of doing business; health, safety and security. In addition, Moscow is located in the first half of the list by thirds of all the variables and in the top ten in 13 variables.
Moscow has shown the most positive trend on the six following variables of ranking: the number of licensed taxis — an increase of 9 positions; the labor productivity growth for 5 positions; the innovation cities index — an increase of 4 positions; the ease of starting a business rising by 2 positions; the working-age population — an increase of 2 positions; foreign embassies and consulates, an increase of 2 positions. Moscow has also shown good results for sustainable development. In addition to seventh-place in the field of sustainable development, a split with Chicago and Los Angeles, Moscow took 3rd place in the area of public parks and 12 place recycling.
Commented Vadim Snorer, the partner of PwC in Russia: "it is Particularly gratifying to note that this year active efforts of Moscow concerning development of transport and infrastructure have been highly appreciated by international researchers. Confident 13 position in the category "Transport and infrastructure" shows that the Moscow authorities pay due attention to these areas. The current rating of the Russian capital took the 7th place in the cost of public transport (lowest price of all European cities) and 9th place in network coverage of public transport. Despite the fact that to improve the transport situation in Moscow, much remains to be done, the efforts have already proven effective".
Moscow has succeeded in addressing not only transportation problems (on this indicator the city has moved from the last ten list in 2012 in his first half in 2014), but also entered the top ten leaders on the number of capital construction projects, leaving behind Shanghai, Hong Kong and new York, and, in addition, has climbed 9 positions to 16th place by number of licensed taxis.
In terms of economic influence Moscow has lost one of the top ten cities and moved to 11th place. But, despite a decline of four positions in terms of GDP (16th), Moscow took 7th place for foreign direct investment, gaining the same with Paris points and ahead of Tokyo and new York, and went to 8 the highest number of head offices of companies from the fortune Global 500, along with Mumbai and Shanghai. The Russian capital also rose by 5 positions in comparison with 2012 in terms of productivity.
Moscow is in the top ten by the share of residents with a higher education. Given the intellectual heritage of Moscow, its 8th place (three places lower than in 2012) in the ranking by the share of residents with a higher education is to be expected, as 10 place for software development and developing multimedia technologies (along with Kuala Lumpur, Chicago and Stockholm). The number of public libraries world level, the Russian capital took 6th place.
Commented Vadim Snorer: "Among the opportunities for improvement of positions of Moscow in the ranking of cities one can mention the price, conditions for doing business, housing. This year's Moscow rounded out the top five most expensive cities that participated in the survey, dropping seven positions compared with 2012, and is the most expensive city in Europe. The city is located in the second half of the list in four of the five indicators in the category "Cost" and the highest the result — 14th place in the cost of living".
Moscow is also behind by the other indicator of quality of life — health, safety and security. In the Russian capital is a fairly high crime rate (24). The city also has poor results on the variable "Availability and quality of housing" (28) and "the Effectiveness of the health system" (27).
Because quality of life depends significantly on the viability of Economics, Moscow could improve this figure by creating more favorable conditions for doing business, according to the authors of the study. At the moment the business indicators of the Russian capital are as follows: 19th place (two places higher than in 2012) according to the degree of favorability of conditions for starting a business; 21 in terms of flexibility of labour laws (ten worst); 26 in terms of risk of personnel management (the top five worst, though compared with 2012 the city has slightly improved its position); 27th place at the cost office (the four most expensive); 28 place for the protection of the rights of shareholders (the bottom three).
In the ranking of leading cities in the world 2014 ranked first in London, becoming the only city that managed to take first place in three of ten categories: the "Economic impact", "the City as a world center of gravity" and "technological readiness Level" (and the championship in the last of these categories, the British capital was divided with Seoul). Also London was only slightly inferior to the first place winner Paris, losing him in the category of "Intellectual capital and innovation", and Sydney is in the category of "Demographics and livability"; it should be noted that both these categories are the most important aspects of the future prosperity of urban areas. New York, which ranked first in the previous ranking, this year moved into second place. Interestingly, although new York and received the highest marks on any of the variables, the city continues to show consistently high results in most of the evaluated categories.
In addition to London and new York in the first top five also includes Singapore, Toronto and San Francisco. The study shows that advanced cities have managed to find the right balance between social and economic benefits in terms of dynamic objective impact of global trends on the situation in the world.
The study also covers the issues of competitiveness of emerging cities across several key indicators. Beijing, which has taken 19th place in the overall ranking, came in the top three in the categories of "the city as a global transport hub and the center of gravity" and "economic impact". Seoul took the first place in the category "technological readiness" and is the only developing city, which is among the ten leading cities in the category "Ease of doing business". Seoul and also Buenos Aires is among the three cities, leading in the category "Transport and infrastructure", and Johannesburg took third place in terms of "Costs".
Below are the main ndings of the survey and the three cities, leading in each of them:
- Intellectual capital and innovation: Paris, London, San Francisco, CA.
- The level of technology readiness: London and Seoul tied for first place, Stockholm.
- The city as a global center of attraction: London, Beijing, Singapore.
- Transportation and infrastructure: Singapore, Toronto; Buenos Aires and Seoul tied for third place.
- Health, safety and security: Stockholm; Sydney and Toronto tied for second place.
- Sustainable development and environment: Stockholm and Sydney tied for first place, Paris and Berlin tied for third.
- Demographics and livability: Sydney, London, San Francisco, CA.
- Economic clout: London, Beijing, new York.
- The ease of doing business: Singapore, Hong Kong, new York.
- Cost: Los Angeles, Chicago, Johannesburg.
Tags: assessment , financial center , finances