Cities in Competition: The FutureSummary and Evaluation of the Competitiveness Study commissioned for Citibank by the Economist Intelligence Unit and its’ results relating to Budapest

Competitiveness: the pastIn the past, city-states competed for economic and territorial influence:

Babylon (17th-18th century BC)Mesopotamia

Sparta-Athens (6th- 3rd century BC)Greek city-states

Venice- Padova (14th century AD)Italian city-states

Competitiveness: The presentThe French Revolution brought about the race

between nations , which lasts until today

However, 50% of the Earth’s population already lives in cities, and

Cities produce 80% of the world’s GDP

In the future, cities will once again compete with one another:DubaiNew YorkLondonMoscowBerlinBudapest

Competitiveness: The Future

The EIU study

Citibank commissioned the Economist to produce a report on the global competitiveness of cities according to the following criteria and weights:

Economic Strength 30%

Human Capital 15%Institutional Effectiveness 15%

Financial Maturity 10%

Global Appeal 10%

Physical Capital 10%

Environment & Natural Hazards 5%

Social and cultural character 5%

The Results 1.

•European and American cities are the most competitive, in spite of their aging infrastructure and budget deficits• Asia’s economic growth is mirrored in the competitiveness of their cities•African and South American cities are the least competitive

Results 2.

Any sized city can be competitive, however population density affects the competitiveness of large cities.

The fastest-growing cities have a population of 2-5 million

Results 3. The biggest advantage of cities in the developed countries is their ability to attract talent :„I have long believed that talent attracts capital far more effectively and consistently than capital attracts talent.”

-Michael Bloomberg, Mayor of New YorkInfrastructure investments in developing cities will determine their growth, however they will need more to become attractive to talent.

Budapest on the list1. New York2. London3. Singapore4. Paris4. Hong Kong6. Tokyo7. Zürich8. Washington9. Chicago10. Boston…

25. Vienna39. Beijing40. Dubai41. Barcelona46. Prague50. Rome53. Warsaw

55. Budapest58. Moscow59. Tel-Aviv

60. Buenos Aires61. Bangkok66. Cracow71. Mexico City72. Athens74. Istambul76. Bukarest76. Rio de Janeiro100.S.Petersburg108.Kiev120.Teheran

http://johomaps.com/world/worldcities.html

Budapest: The numbers

Budapest – Regional Comparison

Budapest – Compared Rank/120 Score/100 Study Avg. Eur. Avg. EU Avg.

Difference b/w Bud and

Eur.

Difference b/w Bud and

EU.

Overall score 55 50,4 49,9 54,6 56,7 -4,2 -6,3

Economic strength 69 34,5 37,1 34 34,2 0,5 0,3

Physical capital 56 77,7 74,9 86,3 90,1 -8,6 -12,5

Financial maturity 68 33,3 47,8 55,7 57,6 -22,4 -24,2

Institutional effectiveness 65 59,8 61,2 68,8 72,1 -8,9 -12,3

Social and cultural character

22 85 60,6 80,3 83,7 4,7 1,3

Human capital 80 60 63,9 66,9 69,2 -6,9 -9,3

Environment and natural hazards

1 100 66,9 76,3 77,5 23,7 22,5

Global appeal 36 17,7 13,2 20,7 24,4 -3 -6,7

BudapestA city we can build on!

Budapest’s competitiveness affects the country as well:The city produces 40% of Hungary’s GDPThe only „metropolis” in the country, regionThe advantages of Budapest:

Has a usable shipping route (Danube) Many highways lead to the city Excellent location - situated along a European transit

route Has an international airport Diverse economic structure European-level schools, universities Vibrant cultural life

Human Capital, talent competitiveness

Economic strengthHuman resourcesFinancial maturity

Budapest’s success = Hungary’s success

Areas for development:

Thank you!

Photos: Wikipedia.org