Making cities work for business
This policy paper sets out why urbanisation is a central consideration for national economic growth strategies. By building well-functioning cities, governments can support the businesses and workers that fuel growth.
Improving the conditions in which businesses operate – from ‘hard’ physical infrastructure to the ‘soft’ legal and administrative environment – can stimulate investment, create jobs, and unlock more dynamic urban economies.
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Making-Cities-Work-for-Business.pdf
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What makes cities work for business?
Well-functioning cities are crucial platforms for businesses to form and grow.
They bring firms and workers together, and this proximity facilitates better sharing of infrastructure, suppliers, and services; the matching of skills to jobs; and knowledge spillovers that foster innovation.
By focusing on delivering public infrastructure and services, governments create the foundations that enable businesses to thrive.
These public services – from public utilities to transport – reduce the cost of doing business, improve productivity, and help firms access workers and markets.
Reducing red tape and stimulating investment are critical to improving the urban business climate.
Streamlining procedures, including through one-stop shops, can lower barriers to entry and expansion, and help attract investment. Inter-agency coordination efforts can also help proactively identify and overcome less visible regulatory hurdles.
Improving employability requires both stronger human capital and fewer barriers to finding and accessing jobs.
Skill-building initiatives and measures that reduce information or search barriers can support this goal. Many programmes, however, have delivered only small and short-lived effects on employment and income, so evaluating costs against benefits is crucial for the effective use of scarce public resources.