In the top 5

Cities of Opportunity 2012 makes its fifth annual analysis of the development of 27 global cities, and through their current and projected future performance seeks to add insight on the policies and actions that make cities function best.

Released October 2012

www.pwc.com/cities

Cities of Opportunity 2012 Paris

Beats London and New York in economic clout

In the top 5 Paris moves up an impressive 4 places in the rankings from last year, climbing to 4th overall. It also scores in the top 10 in 6 out of 10 indicators and in the top 5 in 4, as well as making the top 10 in over half of the variables.

A wonderful place to visit (and a better place to live)Paris’s #1 rank in demographics and livability will not come as a shock to anyone. The French capital:•Ranks joint 3rd in cultural vibrancy and 4th in quality of

living. •Ranks 2nd in public park space.•Finishes in the top 10 in health system performance and end-

of-life care.

#3 in intellectual capital and innovation, ahead of both New York and LondonMuch of Paris’s strength derives from the French educational system, both secondary and tertiary (including, in the latter, the prestigious and highly competitive grandes écoles, many of which are located in or near the city). This allows Paris not only to score particularly well in this indicator but also to rank 2nd just behind San Francisco in the innovation cities index. It also ranks 3rd in both percentage of population with higher education and intellectual property protection; 4th in literacy and educational enrollment; and 6th in its universities’ research performance.

Demographics and livability

#1 Paris#2 Sydney#2 Hong Kong#4 San Francisco#5 Singapore#5 Toronto

Overall

#1 New York#2 London#3 Toronto#4 Paris#5 Stockholm

Intellectual capital and innovation

#1 Stockholm#2 Toronto#3 Paris#4 San Francisco#5 New York

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Not just a pretty place, but an economic powerhouse as wellParis has held onto the #2 ranking in economic clout for several years—a remarkable feat given the eurozone crisis during most of that time. Its performance is robust across the entire indicator, ranking in the top 10 in all variables but one. The city:

•Surprisinglyhasmoreemploymentinfinanceandbusinessservices than either London or New York (beating out the latter by a substantial margin), and ranks 2nd in the variable.

•Ranks 3rd in number of Global 500 headquarters.

•Finishes 6th and 8th, respectively, for FDI by number of projects and capital investment.

• Is in the top 10 in productivity, appreciably ahead of Singapore, London, and Tokyo.

A global destinationTravel to, from, and within Paris is relatively effortless, as the city is not only a continental and international hub—ranking #2 as a city gateway—but the home of a famous Métro that provides the best transit coverage in our study, ranking #1. Paris also ranks joint #3 in public transport systems, as it is part of an extensive network of light rail, ferries, high-speed rail, and bike-sharing. In addition, it:

•Ranks 1st in the number of meetings held by international associations.

•Finishes joint 3rd in CBD access from the airport.

•Finishes at #5 for number of international tourists, aircraft traffic,andpassengerflows.

•Ranks 6th in availability of hotel rooms.

Can enterprise thrive in Paris?Unfortunately,Parisisarelativelydifficultcityinwhichtodobusiness.Itfinishesinthemedianrank,#14,ineaseofdoing business, surpassed by every North American city and several Asian ones (as well as London and Stockholm). It also falls out of the top 10 in every variable except operational risk managementandforeignembassiesandconsulates(finishing1st in the latter).

And can costs be moderated?Paris is also a comparatively expensive city, coming in 4th from the bottom (or #24 out of 27) in cost. Its high costs are reflectedinthetaxrate—5thhighestoveralland,withtheexceptionofMilan,thehighestinEurope—andcostofbusinessoccupancy, which ranks #21 out of 27. Residents are only slightly better off than businesses in terms of rent—Paris ranks 16th in cost of an apartment in the city center. The city is 4th from the bottom for the high price of goods and services as seen in the consumer price index.

Room for growth: Technology and sustainabilityConsidering the strength of Paris’s educational system, it is surprisingtofinditrankingonly19thinInternetaccessinschools. It is equally surprising given the city’s reputation for environmental consciousness that it is tied for 14th in air pollution and ranks 20th in recycling. Moreover, making public transit less expensive—it now ranks 7th in cost—would probably also contribute to more use of public transport and, therefore, to greater sustainability.

Economic clout

City gateway

#1 Beijing#2 Paris#3 London#3 New York#5 Shanghai

#1 London#2 Paris#3 Beijing#4 Shanghai#5 New York

#12 Sydney#13 Seoul#14 Paris#15 Madrid#16 Berlin

Ease of doing business

#20 London#20 Milan#20 Singapore#23 New York#24 Paris#25 São Paulo

Cost