I thought I’d raise attention to this year’s ATKearney’s report on Global Cities that I have come across. Their index and outlook on an annual basis reveal the world’s top-performing cities as well as those with the most potential. Criteria are, as usual, human capital, thoughtful municipal policies, smart corporate investment, and a commitment to building a technology pathway into the future. Basically, the focus is on how cities have become bustling, global hubs that attract people and businesses alike.
The question that has been asked for 2019 is whether the frontrunners of the past will continue to lead on the global stage and what is being revealed in this world of flux that we live in. On one hand, North America’s and European incumbent leading cities still keep an upper hand, but will their prospects keep them there? On the other, what kind of challenge do Asian and Middle Eastern cities present and how fast will they be propelled onto the global stage?
The overriding factor to global cities’ potential has been broken down to and defined by AT Kearney as talent. Can it be attracted and retained? Talent is the key for a city’s enduring prominence in this world we are heading into. How does it migrate and why? And what cities in which parts of the globe will benefit from it? The competition is red hot, in every bracket of the top 10 rankings. Not making maximum efforts to stay in the game results in a downgrade and potentially relative oblivion down the road.
To cut a long story short, New York, London, and Paris have still maintained their decade-long dominance as the top three in the index. New York has so far defended its number 1 spot by its heightened business activity and strong performance in attracting human capital. London has not suffered from the Brexit uncertainty. Quite the contrary, its steady performance, and expectation of more to come have pushed it to the top spot of the outlook index, whereas New York tumbled to rank 24!
Changes in the broader index suggest a fundamental shift. The overall strength of the Asian economies has not only kept Tokyo and Hong Kong within the top 5 of the index but also seen steady improvement in their scores and quickly catching up with the leading trio. Potential effects of HK’s recent mass demonstrations have obviously not been considered. In the outlook ranking, Tokyo moved up by 8 to number 6 and Singapore by 3 to 2. The other big risers in outlook are Abu Dhabi climbing 30 notches, and Taipei 13.
Naturally, Chinese cities are also among the climbers in the index. Beijing and Shanghai very justifiably feature among the top 25 in the index, with Beijing beating Washington DC to it, and Shanghai heavyweight cities such as San Francisco. But in order for China to keep rising and to compete with the incumbent power centers, to simply modernise urban centers with Starbucks, Apple stores, and new infrastructure will not be sufficient. It will need to create cities more open to diversity, or so ATKearney says.
In any case, the report hints at an important message – whoever you are, don’t get too comfortable. New competitors are waiting in the wings, and current status is no guarantee for future rankings. Look no further than cities like Seoul and Madrid that have suffered from relative decline. Key European cities have experienced a slowdown in business activities, which may point at a prolonged uncertainty on the Old Continent. Equally, human scores have considerably weakened over the past year.
In other words, the index says talent isn’t that keen on moving to Europe. New York, on the other hand, still continues to outrank other cities in terms of the foreign-born population. A vast international student presence benefits Boston, Sydney, and Melbourne, for example. ATKearney is truly hung up about the encouragement of human capital as an area that up-and-coming cities must consider, particularly if they want to attract corporations and investment.
Of course, no city is perfect, or so the report goes. Based on the 27 metrics in the index, 17 cities are needed to create the theoretical perfect city with a composite score of 100. This reinforces the notion that no city has a lock on being the most global city. Nevertheless, three cities stand out. New York and London have achieved the highest rating in four metrics, while Hong Kong has achieved the highest status in three. It confirms this author’s long-held view about which places have the goods.
