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Smart Economy in Smart Cities: International Collaborative Research: Ottawa, St.Louis, Stuttgart, Bologna, Cape Town, Nairobi, Dakar, Lagos, New ...
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T M Vinod Kumar
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The present book highlights studies that show how smart cities promote urban economic development. The book surveys the state of the art of Smart City Economic Development through a literature survey. The book uses 13 in depth city research case studies in 10 countries such as the North America, Europe, Africa and Asia to explain how a smart economy changes the urban spatial system and vice versa. This book focuses on exploratory city studies in different countries, which investigate how urban spatial systems adapt to the specific needs of smart urban economy. The theory of smart city economic development is not yet entirely understood and applied in metropolitan regional plans. Smart urban economies are largely the result of the influence of ICT applications on all aspects of urban economy, which in turn changes the land-use system. It points out that the dynamics of smart city GDP creation takes different paths, which need further empirical study, hypothesis testing and mathematical modelling. Although there are hypotheses on how smart cities generate wealth and social benefits for nations, there are no significant empirical studies available on how they generate urban economic development through urban spatial adaptation. This book with 13 cities research studies is one attempt to fill in the gap in knowledge base.

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Part I
Introduction

Springer Nature Singapore Pte Ltd. 2017

T. M. Vinod Kumar (ed.) Smart Economy in Smart Cities Advances in 21st Century Human Settlements 10.1007/978-981-10-1610-3_1

1. Smart Economy in Smart Cities

T. M. Vinod Kumar 1

(1)

Department of Architecture, National Institute of Technology-Calicut, Kozhikode, India

(2)

Social Research Institute (CUSRI), Chulalongkorn University, Bangkok, Thailand

T. M. Vinod Kumar

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Bharat Dahiya (Corresponding author)

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Abstract

Emerging patterns of urbanization world over show differing scenarios in different continents, requiring diverse approaches, policies, and strategies. Amazing democratization of ICT around the world leads to a discussion on sustainable, resource-conserving, and resilient smart cities, and smart city economic development appropriate to different cities, countries, and continents. It can be possible that each city in a particular country and continent may possess differing challenges to smart city economic development. When ancient rural economy gives way to urban economy, which contributes a major share of national domestic product, the emerging question is what constitutes smart city economic development. How is it different from conventional urban economy? Is the theory and practice of conventional urban economy valid in a smart city economy or is it necessary to investigate newer theory and practice of smart city economic development? What is a food shed in a smart city economy in smart cities? What a smart city industry looks like? What constitutes smart city commerce services, transportation, and communication, and how they impact on smart city economy? How do smart cities fit in the urban dynamism and policy dialogue at the global, regional, and national levels? Can smart cities and smart economy be socially inclusive? How to strategize social inclusion in smart city development? What sort of governance and institutional support would smart cities require to fulfil their role with regard to smart economy? What may constitute a Sustainable Model of smart cities economic development, and what may be Smart Cities Standards? These are some of the questions addressed in this chapter.

Keywords

Urbanizing world Challenge of smart cities Democratization of smart ICTs Smart city system Smart economy Sustainable models of smart cities Smart cities standards Smart economy unique in a smart city Transition to smart economy in smart cities theory and practice Collaborative research programme

1.1 Urbanizing World and the Challenge of Smart Cities

We live in the times of a global urban transition [].

1.1.1 Urbanizing World

The first decade of twenty-first century has seen the world becoming urban []. With positive urban demographic growth rates, the urbanization trend continues in all major regions. Among the three developing regions, urban demographic growth rates are highest in Africa and Asia followed by Latin America and the Caribbean.

Fig. 1.1

Urban and rural population of the world, 19502050. Source United Nations, p. 7 []

Within our urbanizing world, the major regions show a diverse though converging trends with regard to urbanization process. Europe, North America, and Oceania already had crossed 50 % urbanization mark when demographic data keeping began by the United Nations in 1950; their urbanization rates in 2014 stood at 73.4, 81.5, and 70.8 %, respectively (Table ). Latin America and the Caribbean urbanized rapidly during 19502000 and, in 2014, reached an urbanization rate of 79.5 % that was much higher than that of Europe. These four regions are highly urbanized (over 70 %) with lower urban growth rates than the urbanizing regions of Africa and Asia.

Table 1.1

Urban population (in million) and its proportion to total population, by major regions, 19502050

Major region	1950	1975	2000	2025	2050
Africa	14.0	24.7	34.5	44.9	1339 55.9
Asia	17.5	25.0	1,393 37.5	2,561 53.9	3313 64.2
Europe	51.5	65.4	70.9	75.8	82.0
Latin America and the Caribbean	41.3	60.7	75.3	82.1	86.2
North America	63.9	73.8	79.1	83.4	87.4
Oceania	62.4	71.9	70.5	71.1	73.5
World	29.6	1,535 37.7	2,856 46.6	4,706 58.2	6,339 66.4

Note Urban population is shown in millions. Proportion (%) is shown in italics

Source United Nations []

Fig. 1.2

Average annual rate of change of the percentage urban by major areas, 19502050. Source United Nations []

Fig. 1.3

Urban and rural population as proportion of total population, by major areas, 19502050. Source United Nations, p. 8 []

In 1950, Africa and Asia started with less than 20 % urbanization rate, and this indicator measured 34.5 and 37.5 %, respectively, in 2000. Despite slow economic growth, Africas urban population grew almost ninefold between 1950 and 2000. Although its urban population base is much smaller than that of Asia, Africa is growing rapidly and is estimated to reach 50 % urbanization rate by 2037. In recent decades, the urbanization process has accelerated in Asia on the back of sustained economic growth in the region. Between 1990 and 2010, Asian urban population increased by over 754 million, which was equal to the combined population of the European Union and the USA; no other continent has undergone such massive population growth in such a short span of time []. With 47.5 % urbanization rate in 2014, Asia is estimated to hit 50 % urbanization mark in 2018.

Demographic record of the past 65 years confirms that the major regions have experienced diverse trends in the urbanization process. Looking towards the future, particularly from now in 2016, it is estimated that all major regions will undergo further urbanization until 2050 (Table ). This is mainly because cities are considered engines of economic growth as they are able to attract secondary and tertiary activities, skilled people, domestic and foreign direct investments and, in turn, contribute to national economic output.

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