The quality of cities andhow to measure it

June 2016PwC’s ChiefEconomist Office

PwC

Megatrends impact our society and businesses

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Three major demographic shifts

AgingIncreasingnumber of

households

Women closingthe gap

Demographic shifts

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Ageing is a Global thing – fertility and morbidity

40 46

32 37

22 40

19 25

27 41

37 41

Source: United Nations Population Division, World Population Prospects, 2012 revision

Median population age, 2013-2050

Demographic shifts

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0 2000

CO

2,

pp

ma

nd

N2O

,p

pb

300

250

400

350

500 1000 1500

Year

1,600

600

2,000

1,800

1,400

1,200

1,000

800

CH

4,

pp

b

Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O)

Get real - unprecedented footprint and emissions

Averagetemperaturesare predictedto increase by

over 2ºC inthe 21 century

2ºC

Climate change and resource scarcity

Cities account for

60% of energy

consumption

and 75% of

carbon emissions

Source: IEA (2012)

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Proven concepts: cities and their peripheries are hometo clusters

California WineCluster

HollywoodItalian LeatherFashion

London City

Dutch Flower cluster

Bit Valley in TokyoSilicon Valley

Dutch High Tech industry

Shift in Economic power

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We have speeded up! What a difference 8 years canmake

Technology &Behaviour“That odd habit ofrecording somethingeverybody else aroundyou is recording too –why?”

Technological Breakthroughs

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It’s not if, but when you will be disrupted

23%

€€€€

€ €€

Cost saving fromcloud computing

15%

Less transport dueto 3D-printed

goods

9%

More peopleusing mobile

internet in thenext 3 years

50%

Jobs that canpotentially be

substituted by AI

20%

€

Population usingm-commerce

€1/Tb

Cost of big datastorage

53%

Increase indemand for nano-

materials

68%

Decrease in Li-ion batteries ’13 -

‘15

15%

Increase in US-productivity dueto robotics since

2008

€1,5 tn

Total costreduction by

2020 due to IoT

75%

Reduction insequencing cost

in the last 3 years

Technological Breakthroughs

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Smart, clean and clever

Technological Breakthroughs

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Rapid urbanisation in pictures

Shanghai 2010Shanghai 1990

Dubai 2015Dubai 1990

Panama 2009Panama 1930

Shenzhen 2010Shenzhen 1980

Sources: “Then & Now: The Stunning Speed of Urban Development”, Web Urbanist (2011), Citywallpaperhd.com (2016)

Accelarating urbanisation

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Economicgrowth

The city as a source of growth… but what makes a‘city’?

The city fuels growththrough connectivity

Source: brilliant maps.com

Holland: a dense country or an empty city?

1,88%

1,31%

1,19%

1%

45min

45min

90min

180min

300min

90min

180min

300min

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Hubs: what are you famous for?

New Land

Flowers ofAmsterdam

AmsterdamHaarlem

Shift in Economic power

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‘A city should be judged not by its size but by its quality’Socrates - Plato

Accelerating urbanisation

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Peaks in the DeltaCities’ DNA based on 9 Capitals

So - what does this mean?

DNA

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Peaks in the Delta

Methodology

61 indicators on 9 capitals

Rankings per indicator and

per capital

Comparisons by city and

by regions

Sources

So - what does this mean?

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Quality of cities: The Hague

So - what does this mean?

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Quality of cities: Rotterdam

So - what does this mean?

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Define your strategy, prioritize and invest

So - what does this mean?

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Where would you like to live and recreate?

So - what does this mean?

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Vibrant and lots of recreational opportunities

So - what does this mean?

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How easy is it for your employees to get to your office?

So - what does this mean?

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High infrastructure investments and lots ofopportunities to charge your electric car

So - what does this mean?

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Where would you like to sell your products & services?

So - what does this mean?

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Young, working urban population

So - what does this mean?

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Comparison on characteristics

So - what does this mean?

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Comparison on characteristics

So - what does this mean?

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Rationale for collaboration

So - what does this mean?

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Rationale for collaboration

So - what does this mean?

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Compare regions

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Two examples how relevant data on regions is used toimprove business

New locations based on potentialclients and competition

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Movie storyline MRDH

Think smart

Think smart Think wise

Think smart Think wise Think big

Think smart Think wise Think big Think ahead

Think smart Think wise Think big Think ahead

THIN

K&

KEE

PFO

CU

SMETROPOOLREGIO ROTTERDAM DEN HAAG

PwC

Check up

Building metropoles makes sense, but check up!

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PwC

Thank you

PricewaterhouseCoopersThomas R. Malthusstraat 5P.O. Box 96161006 GC AmsterdamThe NetherlandsT: +31 (0) 88 792 75 58M: +31 (0) 6 22 48 32 93Jan.willem.velthuijsen@nl.pwc.com

Prof dr Jan Willem VelthuijsenPartner | Chief Economist

www.pwc.nl/nl/megatrends/

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