Presentation of World Bank Institute Book:

Cities in a Globalizing World:

Governance, Performance, and Sustainability
Frannie A. Lautier, editor and author Other authors: Sverine Dinghem, Daniel Kaufmann, Andrew Lemer, Massimo Mastruzzi & Barjor Mehta
We are grateful to the providers of the multiple primary data sources that we utilized in building the city database which was utilized in the empirical analysis in various chapters of the book, and particularly to the World Economic Forum (enterprise survey), the UN Observatory, 1 the Taylor database, and AT Kearney/Foreign Policy.

Growth of Cities, 1950-2050

Population (millions)

10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 2025 0 World More developed regions 2050 Less developed regions 1950 1975 2000

Source: World Population Prospects: The 2000 Revision, vol1, Comprehensive Tables (United Nations publication, Sales No. E.01.XIII.8 and Corr.1).

Understanding cities in a globalizing world

Cities are the birthplace of globalization Cities are the testing ground for governance and democracy Questions:
Does globalization help or hurt cities? What is the role of governance in city performance? What is the impact of city performance on globalization?
3

The Research
Purpose To test assumptions about globalization and urbanization To assess policy implications of findings Scope Research is exploratory and confirmatory Data limitations make it difficult to draw valid conclusions on the impact of globalization on city performance The paucity of data is a key obstacle to effective policy design at the national and subnational level Opportunities for future research
4

Research Approach
Confirmatory Analysiswith hypothesis development and empirical tests Exploratory Analysisusing existing data bases Case Studiesdeveloping them from secondary and primary sources Theoretical Analysisgame theory, political economy
5

Five key themes

Globalization of city infrastructure: Local, networked and global services? City performance profiles: What happened in Africa? Globalization and city governance: Dynamics between the mayor, citizens, and firms? Globalization, technology, and scale: How do they interact? Globalization and city performance: Does governance play a role?
6

Database and Primary Data Sources

Existing and newly collected data and indicators
Kaufmann, Leautier, Mastruzzi (KLM) database at the WBI

Primary Data sources used to construct indices and variables

UN Observatory 1998, 4 indicators of access in 80 cities in 60 countries Firm Level Survey: EOS 2003 of the World Economic Forum, 12 governance indicators, 5 service access indicators, in 271 cities in 101 countries Taylor database, number of companies with major offices (advertising, accounting, finance) in 261 cities in 114 countries A.T. Kearney/Foreign Policy. Globalization Index for 62 countries Mercer 2004 quality of life index in 215 cities CIA World Fact Book, and Heston-Summers PPP for per capita Y Internet search for website presence, city population, budget data and starting a business data (WBI) 7

Globalization of City Infrastructure:

Local, Networked, and Global Services?

Globalization of City Infrastructure

Infrastructure networks are the foundations for urban globalization Infrastructure plant and service are mainly local, but demands are increasingly global Vulnerability and security heighten some old conflicts
Individual preferences vs. collective interests Meeting immediate demands vs. serving future generations Maintenance for daily use vs. maintenance for more security

Globalized infrastructure requires new institutions to manage the interface between local and global interests

Local-Global conflict requires new institutions . . .

New institutions, operating at the community, local, national, regional and global levels, have to respond to preferences of various stakeholders and respect the hierarchy of interests.

For example: Overton Park, Memphis TN 1956: citizens block the construction of a highway linking Memphis to other cities to preserve a local park Jamuna Bridge, Bangladesh 1994-1998: locating project-affected people in a land-scarce country and handling environmental problems of river-training to construct bridge linking cities in the NW region to Dhaka and linking Bangladesh to trade in India Chad-Cameroon Pipeline, 2003: extensive local and international consultation for environmental and social protection including of future generations for an international financed and owned pipeline10

Assessing institutional performance?

The approach
Exploration of globalization and city performance
Construct worldwide database for more than 400 cities Measure globalization at both country and city level Examine city governance and city performance jointly and separately

Definition of urban governance

the processes that steer and take into account the links among stakeholderslocal authorities, citizens, firmsto favor active participation and negotiation among actors, transparent decisionmaking mechanisms, and innovation in urban management policies

Defining city governance and globalization as outcomes that are visible to citizens allows empirical tests of the city as a place or as an enduring performance

11

City Performance Profiles: Economic Performance of Cities, 1993 Cities in countries that are Indicator More globalized Less globalized 1,175

City product per capita (1993 US$/year/person) Average per capita income (Q3/person in US$) Informal employment (percent)

3,818

2,066 32

377 40

Source: UNCHS 1998, Global Urban Indicators.

12

City Performance Profiles: Residential Density, Growth Rates, and Household Size, 1993 Cities in countries that are Indicator Residential density (persons / ha) Annual population growth rates (percent) Average household size (persons) More globalized 96 2 3 Less globalized 252 3 5

City Performance Profiles: Equity in Cities, 1993 Cities in countries that are Indicator Households below poverty line (percent) Income disparity (Q5/Q1)
Source: UNCHS 1998, Global Urban Indicators.

More globalized 26 7

Less globalized 27 12
13

Better balance between pedestrian and City Performance Profiles: motorized forms of travel in more globalized Transportation, 1993 cities
Cities in countries that are Indicator More globalized Mean travel time to work (minutes) Modes of travel to work Private car (% of total to work trips) Train /tram (% of total to work trips) Bus /mini bus (% of total to work trips) Motorcycle (% of total to work trips) Bicycle (% of total to work trips) On foot (% of total to work trips) Other (% of total to work trips)
Note: Percentages do not add to 100 due to rounding. Source: UNCHS 1998, Global Urban Indicators.

Less globalized 35

30

25 14 23 4 11 24 2

10 7 37 12 7 22 13
14

Urban Local Government Revenue and Capital Expenditure, 1993 Cities in countries that are More globalized 266 Less globalized 115

Indicator Local government revenue per capita (1993 US$ / year / person) Local government capital expenditure per capita (1993 US$ / year / person) Wages in the local government budget (%)

104

22

21

38

15

Source: UNCHS 1998, Global Urban Indicators.

City Performance Profiles:

What happened in Africa?

16

City Performance Profiles: The Special Case of Africa

Tremendous growth of urbanization in developing countries Differential performance of cities:
Economic performance (production, jobs, income) Residential density, growth, household size Equity Access to services (transport, waste management, health and education) City government performance (revenues, expenditures, wages) Safety and security (urban crime)

African cities perform well below their counterparts in the developing world, yet post the highest growth among urban populations Special dilemma of Africa:
urbanization without globalization high urban growth not accompanied by the corresponding rapid economic growth

Possible to test hypotheses in Africasince there is high urbanization with low globalizationrelating to locus of policy decisions with respect to cities
17

City-Level Performance Across Regions

Indicator
City waste management services Regular waste collection (from percent of city households) Waste water treated (percent of generated waste water) Health and education in cities Child mortality (percent of children< 5 yrs.) Children per primary classroom

Africa

Arab states

Asia Pacific

Latin America

Industrial ized countries

Transition economies

36

65

67

85

99

91

15

54

26

18

87

64

12 62

8 42

5 40

5 34

0.4 23

0.8 11

Source: UNCHS 1998; Foreign Policy 2003.

18

City-Level Performance Across Regions

Indicator
Africa Arab states Asia Pacific Latin America Industrial ized countries Transition economies

City government revenue, capital expenditure and wages

Local government revenue per capita (1993 US$/year/person) Local government capital exp. per capita (1993 US$/year/person)

15 10

1682 32

245 234

252 100

2763 1133

237 77

Economic performance of cities

City product per capita (1993 US$/year/person)

682

2,095

862

2250

22,926

2,962

Source: UNCHS 1998; Foreign Policy 2003.

19

City Performance for Three African Countries by Level of Globalization: The Role of Governance? Indicator Botswana outperforms Nigeria and Senegal, both at higher levels of globalization, in access to local and networked services, security/safety, and other city characteristics
City population growth rates (percent/year) Average household size (persons) Murders (per 1,000 city population) Thefts (per 1,000 city population) Mean travel time to work (minutes) Solid waste generated per capita (tons / year / person) Regular waste collection (from percent of city households) Waste water treated (percent of generated waste water) Solid waste disposed in open dump (percent of total disposed waste) 33
Botswana

37
Nigeria

41
Senegal

8.4 3.5 0.007 0.5 20 0.01 98 95 99

4.4 5.5 0.02 1.1 53 0.20 31 0.5 28

4.7 8.1 n.a. n.a. 28 0.17 n.a. 0.8 100

20

Source: UNCHS 1998, Global Urban Indicators; Foreign Policy 2003.

City Performance for Three African Countries by Level of Globalization: The Role of Governance?

Botswana outperforms Nigeria and Senegal both at higher levels of globalization in terms of local government and economic performance at the city level

Indicator Local government revenue per capita (1993 US$/year/person) Local government capital exp. per capita (1993 US$/year/person) Wages in the local government budget (percent) City product per capita (1993 US$/year/person

33 Botswana 250

37 Nigeria 3

41 Senegal 9

181 43 594

0.9 41 57

2.2 24 620

21

Globalization and City Governance:

Dynamic interactions between the mayor, citizens, and firms?

22

How do these outcomes come about?

Figure 1 Citizen's Choice

Citizen
Voice

0
Ignore Exit Locate

Exit

Loyal Satisfy Ignore Influence Ignore Loyal Satisfy Exit Locate

Mayor
Satisfy

Influence Ignore Exit Satisfy

Exit

Locate

Influence Ignore Exit Satisfy

Exit

Locate

Influence Ignore Loyal Satisfy

2 4 3

6 8

10 12 11

13

14 16

Firm

Mayor

15

Citizen

23

Citizens Choice

Citizen's Choice Exit Loyal Satisfy Voice Ignore Satisfy

Ignore

Citizens care about quality of life Mayor influences quality of life and control of corruption Firms influence globalization
24

Firms Options in light of Passive Citizens: Does it lead to bad governance?

Citizen's Choice Loyal Ignore Exit Locate Influence

Citizens care about quality of life Mayor influences quality of life and control of corruption Firms influence globalization 25

Firms Options from Voice: Does it lead to good governance?

Citizen's Choice Voice Ignore Exit Locate Influence

10

Citizens care about quality of life Mayor influences quality of life and control of corruption Firms influence globalization 26

Quality of Life and Control of Corruption both matter

120

Quality of Life

110 R2 = 0.3479 100

90 1 Poor Control 2 3

Control of Corruption

4 Good Control

Source: Control of Corruption: KK04, 56 Quality of life: Mercer 2004, 56 cities. Mercers survey provides an evaluation quality of life in 215 cities. We have used the cities with the top 50 ranking in quality of life to catch the maximum effect of the corruption variable. The Mercer study is based on detailed assessments and evaluations of 39 key quality of life determinants, grouped in the following categories: political and social Environment; Economic environment; Socio-cultural environment; Medical and health considerations; Schools And Education; Public services and transportation; Recreation; Consumer goods; Housing; and Natural 27 Environment. Quality of Life Index: New York City=100 (Highest: Zurich, Lowest: Brazzaville).

City Globalization and Quality of Life both matter

City Globalization
110 90 70 50 30 10 90 Poor Quality 100 110 R2 = 0.1344

Quality of Life

120 Good Quality

Source: Control of Corruption: KK04, 56 cities. Globaliization data taken from Taylor 2001. Globalization is defined as the number of international firms located in the citty. 46 'global' advanced producer service firms over 55 world cities. Global firms are defined by having offices in at least 15 different cities. The analysis is Done using the cities in the top 50 of the quality of life ranking according to Mercer 2004. An analysis done Using 261 cities from the Kaufmann-Leautier-Mastruzzi database indicates that when more cities are included The regression line is positive and significant, with good governance contributing to more globalization. 28

Globalization, Technology, and Scale: How do they interact?

29

Patterns from History: Largest City Population in the Last 5,000 Years
City Population (Thousands)
25,000 23,000 2500

20,000 15,000

2000

Decline
y = -362.5x 3 + 4870.8x 2 - 16406x + 14071 R2 = 0.5562 1500 10,000 1000 1,100 500

10,000

Growth
5,000 400 0 -5,000

Decline
1,000 450 900

195BCE

775

935

1750 Year

1800

1975

2005

30 Source: Population data taken from Chandler, Tertius. 1987. Four Thousand Years of Urban Growth: An Historical Census. Lewiston: St. Gourds.

City Size and Quality of Life

Variable Small cities <0.5m Midsize cities 0.5<p<1m Large cities 1<p<5m Megacities >5m

Quality of Life (0-100) Number of cities

69.0 13

65.5 20

61.5 53

64.7 19

Source: Mercer Human Resource Consulting 2002 and 2005

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City Performance and City Type

Access to service Water (%) Electricity (%) Telephone (%) Cell phones (1-7) Internet in schools (1-7) Quality of infrastructure (1-7) # of cities Port No Yes 64 62 79 70 90 81 5.7 5.9 3.3 3.5 3.2 3.4 167 106 Capital No Yes 59 65 73 76 84 87 5.8 5.7 3.5 3.0 3.3 3.3 178 96

Source: UNCHS 1998, EOS-World Economic Forum 2003.

Port cities have poorer access to services, except for internet, cell phones, quality of infrastructureall variables linked to globalization Capital cities have better access to servicesIndication of political influence?

32

City Performance and Technology

Access to service
Water (%) Electricity (%) Telephone (%) Cell phones (1-7) Internet in schools (1-7) Quality of infrastructure (1-7) # of cities
Source: UNCHS 1998, EOS-World Economic Forum 2003.

Website

Budget on site No 63 75 86 5.8 3.3 3.3 262 Yes 92 91 99 6.1 3.4 3.5 6

Start-abusiness info on site No 62 74 86 5.8 3.3 3.3 256 Yes 90 93 95 6.0 3.5 3.5 12

No 62 75 84 5.7 3.3 3.3 210

Yes 68 76 93 6.1 3.4 3.4 58

Technology is an enabler of voice but also provides citizens exit options for self-provision (blue vs red cells) Transparency of information (budget and starting a business) has a 33 positive impact on city performance

Some Observations
Cities play an important role in shaping global decisions (trade, diplomacy, culture, governance). City performance is trackable over long periods. Technology and globalization are intensively interlinked:
Advances in technology influence not only globalization, but also governance.

Good performance has little to do with city size, but good governance is more often obtained in large cities. Modeling interactions between mayors, citizens, and firms can provides insights on the types of policies that are critical for good city management. Africa has a particular pattern of urbanization and globalization, and the lessons point to key areas for attention. Data weaknesses prevent us from making firmer conclusions that could inform better policies.

34

Policy Implications: Skills and Institutions

Build the skills that city managers need to better manage the opportunities of globalization.
Different skills are required for port cities and capital cities.

The donor community should work with city governments and intercity networks and partnerships to support their globalization and governance efforts. Countries and international institutions should develop new institutions that can operate at local, regional, national, and multinational levels. 35

Policy Implications: Africa

Africa should continue in its process of decentralization, which has the potential of yielding the benefits of both globalization and urbanization. Coastal and larger cities should start to play a more global or regional rather than a national role in order to tap into urbanization. Train city managers in Africa to better balance the tension between offering services that can make their cities attractive to foreign investment, while continuing to serve the needs of their growing populations and regional economies.
36

Globalization and City Performance:

Does governance play a role?

37

Globalization and city performance: The key role of governance

The approach Define Globalized City as a place: location with precise boundaries but plugged into global flows (finance, people, products) Define Globalized city as a sustained achievement of performance providing services to citizens and firms over time City mayor as an actor who brings local value to citizens from global activities Citizens participate in key decision making, and the interests of firms are balanced with those of citizens by the city mayor = governance in the context of globalization and local interests The size of a city and the services it provides over time is a test of sustainability as it interacts with other cities to which it is connected = city performance in the context of globalization

38

City Governance and Globalization as Determinants of City Performance

High performance
Quality of city governance

Well-governed local city I

Well-governed global city IV

Poorly governed local city II Expected Worst Low Performance performance Extent of city globalization

Poorly governed global city III

39

Key Hypotheses
Hypothesis 1: Governance matters
A city can be well-performing whether local or global, driven by its good governance alone (quadrants I and IV)

Hypothesis 2: Globalization matters

A global city is better performing than a local city, for a given quality of governance (quadrants III and IV)

Hypothesis 3: Globalization and governance interact positively

There is a dynamic virtuous circle which pushes globalized cities to be better governed and which attracts further globalization in well-governed cities 40

Testing the Hypotheses

Comparison of performance for global and local cities
Global city: multiple offices of major international advertising, accounting, and financial firms in the city Local city: few such offices

City Performance is measured by access to:

Local services (water, sewerage) Networked services (electricity, phone lines) Globalized services (cell phones, internet)

Governance at country level is measured by:

Control of corruption index Bribery to affect laws Diversion of public funds Illegal party financing Organized crime

Governance at city level is measured by:

Control of corruption Bribery in utility
41

Extent of City Globalization, Selected Cities

600

Level of City Globalization

15
N e r ich w Yo r M k a B a d ri rc d e lo Sa na nt S i i a go ng ap B u or e da pe s At t M h e x en ic o s S a C i ty oP au M lo os co M w um Ne ba i w De l Na hi i ro b La i go s wa ea tt a ro Pa tr nt on To O Zu r is l o
42 Y-axis measures (in logs) the sum of offices of accounting, advertising, financial and legal institutions in each city. Drawn from Taylor 2001. Total Sample: 260 cities.

Ease of Starting Business

20 40 60 80 0
on

% Firms Rating Satisfactory (5, 6, 7) 100

Ease of Starting Business, Selected Cities

43 Source: EOS 2003. Question: Starting a new business in your country is generally difficult / easy. Total Sample: 271 cities.

O ea l tta To wa ro nt o Pa r is Z N e ur ic w h Yo M rk B a ad r i rc d el S a on a n S i ti a g ng o ap B u or e da pe Bu At st e n h en o M sA s e x ir e ic o s S a C it oP y a M u lo os c M ow u N e mb w ai De N a lh i i ro b La i G go ab s or on e

tr

Bribery in Utilities, Selected Cities

% Firms Reporting High Corruption (1, 2, 3) 100

Bribery in Utilities

80 60 40 20 0
tt a l To wa ro nt o Pa ri Zu s N e r ic w h Yo M rk a B a d ri rc d e lo Sa na nt S i i a go ng ap B u or e da pe At st M e x h en ic o s S a C it oP y au M lo os c M ow u N e mb w ai De N a lh i i ro b La i G go ab s or on e on O tr ea

44 Source: EOS 2003. Question: In your industry, how commonly would you estimate that firms make undocumented extra payments or bribes connected with Utilities. Total Sample: 271 cities.

Variance in Governance across cities within same country: Bribery in Procurement as an illustration
7

High Bribery
6

Cameroon

Colombia

Lithuania

Spain

Frequency of Bribery

Low
2
Yaounde Douala Bogota Medellin Vilnius Kaunas Madrid
Source: author calculations based on EOS firm survey, WEF2003, 271 cities. Question: In your industry, how commonly firms make undocumented extra payments or bribes connected with awarding of public contracts? (7: very common. 1: never occur)

Barcelona 45

Quality of Infrastructure, Selected Cities

% Firms Rating Satisfactory (5, 6, 7) 100

Quality of Infrastructure

80 60 40 20 0
tt a l To wa ro nt o Pa ri Zu s N e r ic w h Yo M rk a B a d ri rc d e lo Sa na nt S i i a go ng ap B u or e da pe At st M e x h en ic o s S a C it oP y au M lo os c M ow u N e mb w ai De N a lh i i ro b La i G go ab s or on e on O tr ea

46 Source: EOS 2003. Question: General infrastructure in your country is poorly developed / among the worlds best. Total Sample: 271 cities.

Quality of Life Index, Selected Cities

Percentile Rank 100
80 60 40 20 0
on tr e O al tta w To a ro nt o Pa ri s Zu N rich ew Yo r M k a Ba drid rc el o Sa na nt i Si ago ng ap Bu ore da pe s A t th M ex en s ic o Sa City o Pa u M lo os co M w um N b ew ai De lh i N ai ro bi La go s

Source: Mercier, 2003. Total Sample: 215 cities. Merciers survey provides an evaluation of quality of life in 215 cities. The study is based on detailed assessments and evaluations of 39 key quality of life determinants, grouped in the following categories: Political and social environment; Economic environment; Socio-cultural environment; Medical and health 47 considerations; Schools and education; Public services and transportation; Recreation; Consumer goods; Housing, and Natural environment. Quality of Life Index: New York City = 100 (Highest: Zurich, Lowest: Brazzaville);

Quality of Life Index

Local Services: Access to Water, City Governance and Globalization

(Non OECD Sample)
Poor Governance
100%

Good Governance

Global City

Local City

Access to Water (%)

20%

Control of Corruption

Bribery in Utility

State Capture

Control of Corruption

Bribery in Utility

State Capture

48

Sources: EOS 2003, UN 1998, KK 2002 & KLM 2004

Networked Services: Access to Electricity, City Governance and Globalization (Non OECD Sample)
Poor Governance Good Governance

Global City

100%

Local City

Access to Electricity (%)

90%

80%

70%

60%

50%

Control of Corruption

Bribery in Utility

State Capture

Control of Corruption

Bribery in Utility

State Capture

49

Sources: EOS 2003, UN 1998, KK 2002 & KLM 2004

Globalized Services: Access to Cell Phones, City Governance and Globalization (Non OECD Sample)
High
7

Poor Governance Good Governance

Local City
Access to Cell Phones
6

Global City

Low
3
Control of Corruption Bribery in Utility State Capture Control of Corruption Bribery in Utility State Capture

50

Sources: EOS 2003, KK 2002 & KLM 2004

Control of Corruption Matters for Local, Networked, and Globalized Infrastructure Services
LOCAL SERVICE: ACCESS TO WATER (%)

Bribery in Utility
Full City Sample

State Capture 0.10*** 0.04 0.10** -0.06

NETWORKED SERVICE: ACCESS TO ELECRICITY (%)

Control of Corruption 0.11*** 0.06* 0.15*** -0.09*

Global City Local City Differential

0.11*** 0.10* 0.09** 0.01

Bribery in Utility
Full City Sample

State Capture 0.05** 0.06* 0.07* -0.01

Control of Corruption 0.05*** 0.06** 0.07** -0.01

Global City Local City Differential

0.05** 0.05 0.05* 0.00

GLOBALIZED SERVICE: INTERNET ACCESS AT SCHOOL (1-7)

Bribery in Utility
Full City Sample

State Capture 0.93*** 0.82*** 0.78*** 0.04

Control of Corruption 1.12*** 0.98*** 1.21*** -0.23 51

Global City Local City Differential

0.99*** 0.97*** 0.64*** 0.34*

Significant and large

Significant
Source Dependent Variables

Globalization and Governance Matter For City Service Performance Delivery

UN 1988 Access to Water % 0/0 0/ UN 1998 Access to Electricity % 0/0 0/0 EOS 2003 Access to Telephone Lines 1-7 +/0 +/* EOS 2003 Internet Access 1-7 0/0 +/* EOS 2003 Quality of Infrastructure 1-7 +/0 +++/***

Global City (3) Kearney Globalization Index Control of Corruption Income per Capita # of cities Adjusted RSquared

+/** +/***

0/* +/**

++++/*** ++++/***

+/0 +++/***

++++/*** ++++/***

63 0.28

61 0.11

194 0.39

194 0.28

194 0.45
52

Source: Kaufmann-Leautier-Mastruzzi database

Determinants of Good Governance and Corruption Control: both city and country level globalization matter
Source Dependent Variables EOS 2003
Low Bribery in Utilities

EOS 2003
Low Informal Money Laundering

EOS 2003
Low Street Crime

EOS 2003
Red Tape Cost of Imports

EOS 2003
Low Bribery to affect laws

EOS 2003
Low Diversion of public funds

EOS 2003
Low Illegal Party Financing

City Variables Global City (3) +/ ++/*** +/ -/** ++/** ++/** ++/***

Country Variables Kearney ++++/** ++++/*** ++++/** Globalizati * * on Index # of Cities Adjusted R-Square 193 0.30 193 0.21 193 0.19 -/*** +++/*** ++++/** * 193 0.29 ++++/***

193 0.24

193 0.21

193 0.17

Source: Kaufmann-Leautier-Mastruzzi database, drawing from EOS-WEF 2003 as well as other sources per below.

53 City level governance indicator = global city Country level governance indicator = Kearney Index

Policy Implications: Governance

Reforms needed to improve national-level governance: it matters for city-level performance Donors/IFIs: further monitor & support governance Local level Governance Matters (incl. bottom-up) -- Reformist city leaders using their policy & institutional levers -- & working on anticorruption
--

Donors/IFIs: more focus to support city-level governance improvements [& programs]

-- Voice and Transparency at local level: pressure for good governance; and vs. Local Bosses
-- IT revolution + globalized competition for investments: for transparency and good governance at city level
54

Areas for future research

Bridge data gaps and further validate initial results: -- Further collection of city level data to complement historical
data; collect comparable cross-city data on globalization & urban governance; expand the 400-city KLM database -- With expanded & updated database, validate or challenge initial research results + shed further light on: i) links between globalization, governance & city performance; ii) complex link between city-size and performance; iii) characteristics of urban services to citizens & their implications for choice; iv) interface between technology and choices on voice, exit, and loyalty

Towards methodology to capture dynamics of urban governance over time, (building on the game theoretical model) for explaining Africa city performance What types of interventions at the local level can be particularly effective for improving governance?: voice, IT, 55 transparency, media, scorecards, competition

Data for Analysis and informing Policy Advise, not for Precise Rankings
Data in this presentation is from a plethora of individual sources, from WBIs aggregate governance indicators, as well as enterprise surveys (such as the WEFs EOS), and expert polls. All are subject to a margins of error. It is not intended for precise comparative rankings across countries or cities, but instead it is useful for statistical empirical analysis to draw general insights and conclusions about policy and institutions, as done in the book chapters. The indicators do not reflect official views on rankings by the World Bank or its Board of Directors. Errors are responsibility of the authors.
56