BUSS1000 mod 9 urbanisation

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Oct 30, 2023

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BUSS1000 mod 9 urbanisation Brief notes What is urbanisation? Different countries define urban areas differently. Even the UN struggles to distinguish between urban and non-urban areas. Various countries have their own definitions of what makes up an urban area. For example: ● Building-focused: Algeria classifies urban centres as places with 100 or more buildings that are less than 200m apart. ● People-focused: In Botswana, urban areas are places where there are more than 5000 inhabitants, and ¾ of economic activity is non-agricultural (manufacturing or services). ● More-balanced: India’s urban centres are determined by the number of inhabitants, population density and at least ¾ of the adult male population employed in pursuits other than agriculture. RAPID URBAN GROWTH Effects: demographic, economic, political GLOBAL URBANISATION McKinsey & Co. (in Delivering Change , 2016) found three overarching trends that impact transportation in an urbanised centre: 1. Technological advancements – where automation and innovation generate new revenue sources. Providers need connected services to move into more data-enabled business models. Innovations like autonomous delivery robots or 3D printing are likely to have a large impact in the future. 2. Regulations/sustainability – providers need to prepare for much tighter regulations, especially around emissions and fuels, especially in large urban centres. Large urban centres will need to find more sustainable solutions. 3. New (urban) consumer demands – c onsumers in urban centres are changing their expectations, especially in e-Commerce, which translates into new challenges for last-mile logistics services. Global urbanisation trends seem set to continue. In 1950, 70% of the world population lived in rural settlements but in 2018, 55% of the population is urban. Take a look at the global patterns of urbanisation in the diagram. INFORMATION COMMUNICATION AND TECHNOLOGY Data flows around the world McKinsey conducted a study that compares how data flows across the globe. In 2005, the total data flow was 4.7 terabytes/second. In 2014, 211.3 TBps. The estimates for

2019 is 1020 Tbps. Our data flow is increasing, and we are relying more on ICT in our everyday life! But data is unevenly distributed to urbanised vs under-urbanised parts of the world. For example, in North America, 90% of the population are internet users. Compare that to Africa with low urbanisation – where only 39% of the population are internet users. We can expect to see a lot of growth in Africa in future years, compared to the rest of the world. Inexpensive and free-flowing data has enormous advantages for urban growth in the areas of transport and in creating an integrated, 'smart' cities. Disruptive changes in transportation According to the OECD International Transport Forum, “ITF Transport Outlook 2019”, there are five core factors which drive disruptive change in transport, these are: ● Cost: new technologies and/or processes make old ones uncompetitive in terms of production costs – the new ones become so cheap that old ones become unprofitable ● Quality: new technologies and/or processes raise the quality of products or services to a level that makes the old ones uncompetitive ● Customers: significant changes in consumer or business customer preferences make previous products or services unattractive compared to new ones ● Regulation: new laws or regulations no longer permit old ways of working – for example environmental or labour protection rules – or allow new ways of doing things that previously were not allowed ● Resources: previously important resources are no longer readily available or previously nonexistent or inaccessible resources now become available SMART CITIES Essentially, these are innovative cities that are integrated. Cities have a central system that controls the way public transport work and other mechanisms, to create a more efficient and effective society. Few cities in the world are running the gamut of a smart city. However, Sydney is planning to develop an integrated metropolis of three cities, with talks of infrastructure and greater engagement. Example: Singapore on the other hand had developed a vision and strong policy driving an interconnected plan based on Mobility, Safety, Healthcare and Smart Administrative services – according to Innovation is Everywhere (2018). ● Mobility – Singapore has applied smart, connected traffic solutions, in

conjunction with very strong governance limiting car ownership and reducing the number of vehicles on its roads. Consolidating its ride sharing services, also seen the arrival of station-less shared bicycles and the first electric car sharing services, deploying over 1,300 cars, which makes it the world’s second biggest electric vehicle car-sharing programme after Paris. ● Safety – Singapore is considered one of the safest places in the world, it ranks second in the Safe Cities Index 2017 ● Links to an external site. ● after Tokyo. ● Healthcare – its focus is on addressing healthcare service provision for elderly citizens through a range of technologies, including digital service platforms as well as remote monitoring devices. ● Smart Administrative Services – policies are driven by the strategic imperative to address citizens’ pain points when transacting with the Government [Source: Innovation is everywhere] Dimensions that make a smart city - Human capital - Social cohesion - Economy - Governance - The environment - mobility/ transportation - Urban planning - International outreach - Technology URBANISATION AND OTHER MEGATRENDS - Ageing populations: Urbanisation, fertility rates and aging population rates are all linked. Compare the two graphs below that show how age is distributed. (The Y axis shows average age.) People living in urbanised areas have a higher life expectancy due to better medical care, education, hygiene and higher income levels. Young people moving to cities are less likely to have children, which also tends to lead to longer life expectancy. In middle Africa, there are high fertility rates and high population growth. - Formula for megatrends? Urbanisation is measured by the area of business in agriculture, industry and services. (Agriculture relates to farming pursuits; industry is mostly about manufacturing and engineering; and services covers lawyers, doctors, hairdressers and so on.)

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● Low urbanisation – increase in agriculture, decrease in industry and services ● Medium urbanisation – decrease in agriculture, increase in industry and services ● High urbanisation – decrease in agriculture; increase in services; steady industry You could almost think of this as a formula: higher level of services (professional) = higher urbanisation = lower levels of fertility = higher levels of aging . Almost, but not quite. Business is never quite that simple! CLIMATE CHANGE AND URBAN AREAS - Enviro impact While generating 85 per cent of GDP, cities also contribute to 70 per cent of carbon emissions. GDP is very closely linked to energy – the more energy we use, the higher the GDP; and the higher the GDP, the more energy we use. Theoretically, this is a 1:1 relationship. But between 1950-2005, global urbanisation grew by 20% and emissions from fossil fuel burning increased by 500%. This is an alarming statistic. Four factors contribute to this substantial growth: Furthermore, the same PWC study forecasts a global population of 8.3 billion by 2030. What do you think the carbon emissions will be by that time? Different types of hazards

CASE STUDY The city of Miami has approached USBS Consulting for guidance. Miami metro is in the top-10 most densely populated cities in the United States. A vibrant city considered the gateway to Latin America, the city has various social issues or ‘hazards’ that are engrained from decades of crime and lack of support for immigrants. In addition, the area is highly prone to the impact of climate change including increasing powerful hurricanes and flooding due to its geographical position and various low-lying areas. The city of Miami wants assistance in reaching their goal of creating a ‘entrepreneurial ecosystem to ensure a prosperous, tech-enabled, future economy’. They view this as being critical to help attract investment to the city, which in turns brings various socioeconomic benefits including development of infrastructures, education and opportunities to the various demographics the city houses, while developing high-level skills, supported by key universities. The City of Miami is wanting to identify key areas of opportunities and challenges in relation to their current initiatives. Ensure you prepare your answers for the following discussion questions which will be discussed in our meeting: 1. Do some background research into demographics of Miami (get on google), what big shifts have been occurring recently as a result of urbanisation? What challenges do you think this brings? 2. What are the key reasons highlighted in the case for Miami to focus on encouraging and improving start-ups to help the development of the city?

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(pg 1) (pg 2) 3. What social issues are potential hazards to preventing the city harnessing an ‘entrepreneurial ecosystem to ensure a prosperous, tech-enabled, future economy?’ (pg 2) 4. What other issues are highlighted in the case that could have a negative impact on reaching this goal?