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Expert Group Meeting on Governance & Capacity Development for Urban Resilience

Equity and Economic diversification in Cities

23 November 2018

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Equity and Economic diversification in Cities

While cities in the region are extremely successful in building wealth; very few cities of them have provided

secure livelihoods for all income groups, or have frameworks in place to help them to bounce back in case of economic crises, or changes in global labor markets. There are also new threats

• n the horizon: “Fourth Industrial Revolution”, trade wars and increasingly footloose capital.

What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats?

Group C objectives

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The region has experienced fast economic growth…

The % of people below international poverty line have decreased significantly Four of the world’s five most expensive cities are in Asia

…but Equity for lower income brackets challenges remain…

China, Indonesia, Laos, India, Bangladesh and Sri Lanka Over past 2 decades (Source: Oxfam) Across Asia The national minimum wage in many Asian countries – where it is paid – is on average a quarter of the amount required for a decent standard of living

With skills being a main driver

Highly skilled workers with more education see their incomes rise, while low‐skilled workers see their wages reduced (Source: ADB)

What are the Equity challenges in the region?

10% richest Share of income increased by more than 15% 10% poorest Share of income fell by more than 15% Women wages Men wages 70‐90% & higher % of informal Equity is when the identity of a person has no detrimental effect on the distribution of resources, opportunities and

• utcomes for that person (Oakland’s mayor)

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Economic crises risks The labor market is changing fast

In many industries and countries, the most in‐demand occupations or specialties did not exist 10 or even five years ago

Informal sector is large (47%) Diversifying workforce Fourth industrial revolution is changing work

Mobile internet, Big data, IoT, Sharing economy and robotics

Globalization & Footloose capital So… prepare for the Unexpected

By one popular estimate, 65% of children entering primary school today will ultimately end up working in completely new job types that don’t yet exist

And… be ready for significant Re‐skilling

WEF estimates that more than 50% of the workforce will require re‐skilling between now and 2022 (20% more than 6 months)

What are the economic challenges in the region?

Drivers of change in demographic and socio‐economy Drivers of change in technology

Source: Future of Jobs Survey World Economic Forum

5 Social & Economic shocks and stresses are significant challenges in our Low‐Medium and Medium‐High income cities (20‐25%) including:

• Unemployment
• Poverty
• Economic inequality
• Lack of affordable & Informal housing
• Inadequate education systems
• Financial / economic crisis
• Shifting macro‐economic trends
• Displaced populations / migrants
• Ethnic Gender inequality

From 100RC strategies

What are the major socio‐economic vulnerabilities of cities in our 100RC network?

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Equity and Economic diversification in Cities

What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats?

Group C objectives

Expert Group Meeting on Governance & Capacity Development for Urban Resilience

Equity and Economic diversification in Cities

23 November 2018

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Equity and Economic diversification in Cities

While cities in the region are extremely successful in building wealth; very few cities of them have provided

secure livelihoods for all income groups, or have frameworks in place to help them to bounce back in case of economic crises, or changes in global labor markets. There are also new threats

• n the horizon: “Fourth Industrial Revolution”, trade wars and increasingly footloose capital.

What are the major socio‐economic vulnerabilities of cities in the region? How have cities built social and economic resilience in the face of these new threats?

Group C objectives

9 15 minutes – 3‐5 minutes per pitch The 4 facilitators will give a brief “pitch” to the whole group to frame their theme and highlighting the rationale, why their issue is one of the most pressing in the region 5 minutes Facilitators will present a short deeper dive into the topic surfacing the key challenges and opportunities to be dealt with by the group. 30 minutes Each group will critically dissect challenges, opportunities and key practices. 3‐5 minutes Each chair will present the key conclusions of the group work 15 minutes A facilitated discussion, aimed at distilling the priority topics and approaches to be included in the final chapter outline.

Format of the session

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What are traditional urban governance strategies?

Building Skills

Education, skills training and employment search… Ever‐changing work environment (digitalization, automation…)

Supporting social systems

Access to formal jobs, health care, welfare and family support mechanisms that enable people to focus on work… Access to those services is severely restricted by budget realities

Enabling infrastructure

Access to affordable housing, mobility solutions enabling access to work

• pportunities…

Job locations are evolving / changing very fast

Promoting new businesses

Business development, access to credit, incentives strategies… Capital is very mobile Booming sectors are evolving very fast

Promoting formality & equity

Labor rights preventing discrimination & too low salaries… Progressive Tax systems Investments are very mobile in a global economy (footloose capital)

But those approaches are being challenged How can cities built social and economic resilience in the face of these challenges? Cities are experienced in traditional approaches

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In our 100RC strategies, we have found that most of the initiatives addressing equity & economic resilience involve City leadership & Engagement

How are cities addressing the challenge?

Most equity & economic initiatives focus

• n Urban

Governance & Engagement

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Example of resilience project The example of the Lighthouse project in Pune

Disadvantaged communities (slums) Youth unemployment Partition between the government and the citizens Lack connection corporations

Challenges

Independence & Workplace competencies in youth Placement services Skills Market Place through Physical & Online Platform for collaboration among primary stakeholders of the city Industry‐led platform (CSR)

Initiative

Adaptive Skills / Market alignment Empowerment & Cohesion

It is a public private partnership that empowers the Government, Corporates, NGOs and Citizens to cooperate towards changing lives

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Example of resilience building Boston Network Exchange | Equitable and Resilient Cities 8 cities (US, Canada, UK) & Experts partners

• Open and Courageous Leadership is Critical to Tackling the Stress of Structural Racism in Cities
• Cities Need to Rely on their Existing and Diverse Array of Levers to Build Racial Equity & Resilience
• Communities Must Be Co‐Creators in Solutions to Forge New Paths to Equitable and Resilient Cities
• Practitioners need to pivot towards more systemic interventions at the neighborhood or city scale
• Data and Impact Measurement Are Critical but Must Look Beyond Numbers to Tell the Whole Story

Share practices and tactics to promote racial equity

• utcomes across city systems and in the delivery of core

services

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The challenge:

Drive equity and build economic diversification through urban governance What are the major socio‐economic vulnerabilities of cities in the region? (15min)

 Skills  Businesses (attracting, creating…)  Infrastructure (housing & transport)  Supporting social systems  Resilience to disasters & climate  Informality  Equity  Others…

How have cities built social and economic resilience in the face of these new threats? (20min)

 Government long‐term planning & market regulation (regulatory, planning, assets)  Financial, fiscal & regulatory support for job creation (budget)  Supporting education, social support systems for all (convening, policy)  Co‐design & Partnerships  Use of analytics & indicators  Other levers / approaches…