With the rapid rise of millions of youth graduating into the labour market, so many business professionals and experts have delved deeply into finding solutions to International problems of under developed countries.
World Bank experts, Anabel Gonzalez, Senior Director for the Trade & Competitiveness Global Practice, and Ede Jorge Ijjasz- Vasquez, Senior Director for the Social, Urban, Rural & Resilience Global Practice, have reported that rise of urban cities globally help in creating jobs for millions of youth who enter the work force every year.
A joint study carried out by the experts recently specifically on the development of East Asia, where cities have grown faster than anywhere else in the world posited that “between 2000 and 2010, nearly 200 million people moved to East Asia’s urban centres which include, eight “mega cities” with populations over 10 million, and 123 large cities with one to 10 million people”.
Urbanization Can Boost A Country’s Growth, Experts Says
The research, titled ‘Competitive Cities for Jobs and Growth: What, Who, and How’, was primarily undertaken to chart road map to create jobs in urban cities.
They reported that with mere 36 percent of East Asians’ total population living in urban areas that it will likely witness many more decades of rapid urban growth.
The experts noted that very few countries have reached income levels of $10,000 per capita before reaching about 60 percent urbanization. Against the backdrop of their findings, they assured that if managed well urbanization can boost economic growth as well as help in eliminating extreme poverty and boost shared prosperity.
According to the report, for urbanization to boost growth there would be need for proactive policies toward the provision of land, housing, and services for the new urban residents, and urban planning that matches physical expansion with access to jobs, affordable housing and shopping, high quality public transportation, and health and education services to ensure equal opportunity for disadvantaged communities.
They cited Singapore as a good example of countries in East Asia that has sustainable urban planning and urbanization-driven growth, where infrastructure investments were transformed into productive assets for economic expansion and increased prosperity in the city-state, enabling GDP growth to average 7.7 percent in the last 50 years.
The duo through the report found that globally, 72 percent of cities grow their GDP faster than their national economies. In their attempt to find solutions to how more cities in Asia do better at generating jobs and how can more cities host dynamic and fast-growing industries, they listed some steps that must be taken by governments to make their urban cities economically relevant to national development.
1. Tradable Commodities
First, job creation and economic growth are more likely to come from some industries than others – namely those that are tradable. ‘Tradable’ means goods and services that are geographically mobile and, thus, subject to regional and international trade.
2. Good Policies And Investments
Second, the right combination of policies and investments can set the stage for thriving industries. They noted that in the world’s most competitive cities, governments provide a conducive regulatory environment and provide targeted support to particular industries.
3. Government Cannot Do It Alone
Third, mayors and city leaders – and governments more broadly – cannot do it alone. Only close partnership with private sector firms and industries will generate more jobs.
4. Implementation Of Strategic Actions
Fourth, they noted that a key difference between competitive cities and ‘the rest’ was not the existence of a city development strategy on paper, but effective implementation of strategic actions.