According to Google Trends, the popularity of the phrase “sharing economy” has increased sixteenfold since 2013. But what is it? Sharing economy is often confused with overlapping terms such as the “collaborative economy”, “on-demand economy”, “gig economy”, “freelance economy”, “peer economy”, “access economy”, “crowd economy”, “digital economy” and “platform economy” – distinctions explored here.
Sharing is an age-old concept. But the potential pool of people with whom to share is growing exponentially, as technology-enabled platforms connect and vouch for new members from around the globe. Cities can leverage the potential of the sharing economy in municipal goods, municipal spaces, civic assets, municipal services and skills and the talents of city residents.
“While sharing may often decrease the cost of access, it also has the potential to address long-term societal challenges such as making cities more inclusive and building social connections between groups that might otherwise never have interacted. In experimenting with sharing practices, however, cities will also have to be agile in addressing externalities and disruption to their planning processes, policy formulation and regulatory structures,” said Cheryl Martin, Head of Industries, World Economic Forum.
The paper, mandated by the World Economic Forum Future of Urban Development and Services Initiative Steering and Advisory Committee, explores opportunities and challenges of the sharing economy in cities by highlighting examples and solutions from cities around the world:
- Melbourne is a global leader in the food-sharing sector.
- Seattle has six “libraries of things” in lower- and mixed-income areas, where citizens can borrow tools.
- New York organization 596 Acres supports residents to reclaim and manage public land for communities.
- Barcelona is driving a time-bank project where people exchange their time for doing everyday tasks.
- London has a crowdfunding platform where citizens can propose project ideas and get City Hall’s support.
- Seoul now has 97 distinct sharing schemes, from public bicycles to parking spaces to children’s clothes.
- Kamaishi City is partnering with sharing platforms to prepare for hosting the 2019 Rugby World Cup.
- Kigali motorbike taxi app SafeMotos uses smartphone data to distinguish safe from unsafe drivers.
- Amsterdam is connecting senior citizens and low-income households to sharing platforms via CityPass.
- São Paulo has implemented road-use fees to encourage transport network companies (TNCs) to complement public transit, limiting excess supply during peak hour congestion and augmenting supply when less served.
The paper also explores sharing-economy ideas that span multiple cities:
- “Co-City” protocol is exploring forms of shared, collaborative and polycentric urban governance.
- Sharing Cities Alliance organizes summits, seminars and a knowledge base for cities to draw on.
- Trust Seal is the first Kitemark for sharing-economy companies, proving they adhere to good practice.
“The sharing economy is making cities redefine land-use strategies, minimize their costs, optimize public assets and collaborate with other actors (for-profits, non-profits, social enterprises, communities and other cities) in developing policies and frameworks that encourage continued innovation in this area. This paper focuses on the drivers of sharing in a city and how cities can embark on the sharing journey,” said Gregory Hodkinson, Chairman, Arup Ltd and Chair of the World Economic Forum System Future of Urban Development and Services Initiative.
The sharing economy has its challenges – from establishing trust and reputation to ensuring safety and security, and dealing with the uncertain effects on social equality and limited inclusivity. As Hazem Galal, PwC Global Cities and Government Leader, said: “Regulatory and tax structures need to be revisited to address these concerns as sharing platforms begin to scale across different sectors of the economy. At the same time, developing a culture of sharing within cities to improve services with accountability and transparency would go a long way in shaping the ‘sharing cities’ of the future.”
The paper explores potential solutions to these challenges. It makes the case that sharing in cities can have a transformative impact – boosting the economy and nurturing a sense of community by bringing people into contact with one another, facilitating neighbourliness, and improving the environment by making the most efficient use of resources. Cities have a potential role in facilitating/enabling and harnessing the sharing business models by fostering partnerships that shape a “sharing and collaborative” culture across all industry sectors.
As urbanization grows, cities unveil sustainable development solutions on World Day
Over half of the world’s population now live in cities, with numbers expected to double by 2050, but while urbanization poses serious challenges, cities can also be powerhouses for sustainable development; something the UN is spotlighting on World Cities Day, marked 31 October.
The UN Educational, Scientific and Cultural Organisation (UNESCO) will host a celebration at its Paris Headquarters on Thursday, convening representatives from all corners of the world for discussions on how cities can combat the climate crisis, create more inclusive urban spaces, and contribute to technical innovation.
Cities provide a wealth of opportunities, jobs included, and generate over 80 per cent of gross national product across the globe, according to UN estimates. Urban areas also account for between 60 and 80 per cent of all energy consumption, despite only occupying three per cent of the planet’s surface and are responsible for three quarters of all greenhouse gas emissions.
In addressing these pros and cons, the Organisation has advocated for a “people-centred” development model, and aims to “re-humanise cities” in the face of trends impacting them, from population growth, demographic shifts, and increasing the risk of disasters induced by climate change.
This year’s theme: “Changing the world: innovations and better life for future generations” spotlights the role of technology and young people in building sustainable cities. To do so, Thursday’s commemorative event will be organized along four key discussion themes: ‘Cities 4 Sustainable Development Goals (SDGs)’, ‘Cities 4 Climate Action’, ‘Cities 4 Communities’, and ‘Cities 4 the Future’.
In line with its multidisciplinary mandate, UNESCO’s 2004 Creative Cities Network continues to harness the various ways cities spanning the globe are placing creativity and cultural industries at the heart of their development plans.
From gastronomy in Tucson, Arizona, to design in Nagoya, Japan, the network engages more than 246 cities, which integrate creative approaches in their development plans, 66 of which UNESCO announced as newcomers on the World Day. See the complete list of cities, and their creative undertakings here.
For World Cities Day this year, UNESCO is partnering with the UN”s Food and Agriculture Organisation (FAO), UN-Habitat, and refugee agency (UNHCR) to amplify the concerted action of the United Nations for cities alongside their planners and other urban players.
The UN-proclaimed World Day serves as a call for States, municipalities and city dwellers to work together for transformative change and sustainable strategies for cities, as urbanization continues to swell.
UN chief calls cities a battleground for climate crisis
Secretary-General António Guterres explained in a statement attributable to his spokesperson, that “the choices that will be made on urban infrastructure in the coming decades…will have decisive influence on the emissions curve. Indeed, cities are where the climate battle will largely be won or lost.”
From electric public transport to renewable and energy and better waste management systems, cities are “hubs of innovation and creativity, and young people are taking the lead.”
In addition, he highlighted that World Cities Day comes as “urban October” concludes, a month dedicated to raising awareness of urban challenges, and successes in sustainability.
“Let us commit to embracing innovation to ensure a better life for future generations and chart a path towards sustainable, inclusive urban development that benefits all”, he encouraged.
Spotlight on cities
Over half the world’s people live in cities. As more and more people move into cities from rural areas a number of environmental and social challenges arise, including overcrowding in slum areas, poor sanitation and air pollution. However, urbanization can also present great opportunities and is a critical tool for achieving the 2030 Agenda for Sustainable Development if done right.
Cities have always been drivers and incubators of innovation. It is often said that the battle for achieving the Sustainable Development Goals will be won or lost in cities. For this to happen, cities will have to continue to drive innovation to achieve a lasting impact in communities and to ensure that “no one and no place” is left behind.
This year’s World Cities Day, hosted by the City of Ekaterinburg, Russian Federation and co-organized by UN-Habitat, the Shanghai People’s Government and the City of Ekaterinburg, will focus on technology and innovation: digital innovations that can be used for urban services to enhance people’s quality of life and improve the urban environment; technologies for building more inclusive cities; opportunities for generating renewable energy and; technologies that can promote social inclusion in cities.
This year’s theme for World Cities Day on 31 October is “Changing the world: innovations and better life for future generations.”
Technologies such as artificial intelligence, virtual, augmented and mixed reality and the internet of things present efficiency and communications opportunities requiring new governance frameworks. This rapid rate of innovation also puts pressure on urban policymakers and managers to strengthen their capacity when it comes to understanding, procuring and regulating new technologies.
The UN Environment Programme (UNEP) works in partnership with UN-Habitat and others to promote the sustainable development of cities.
Jointly with the World Health Organization, the Climate and Clean Air Coalition and the World Bank, we lead BreatheLife, a global campaign to mobilize cities and individuals to protect our health and our planet from the effects of air pollution.
Together with Cities Alliance, the United Nations Human Settlements Programme (UN-Habitat) and the World Bank, we launched the Knowledge Centre on Cities and Climate Change (K4C), an online repository of information on climate change that advocates informed decision-making in local governance.
Check out UNEP’s work with partners relating to cities, covering green spaces (and the importance of trees in soaking up pollution), sustainable transport, district heating and cooling, sustainable waste management, sanitation and more.
Four Regional Development Banks Launch Joint Report on Livable Cities
Rapid urbanization has provided most cities in the world with opportunities to provide more sustainable, vibrant, and prosperous centers for their citizens. But they must first address challenges such as inadequate infrastructure investments, pollution and congestion, and poor urban planning, according to a new report released today.
The report, Creating Livable Cities: Regional Perspectives, looks at urbanization trends across emerging and developing economies in Africa; Asia and the Pacific; emerging Europe, Central Asia, and the Southern and Eastern Mediterranean; and Latin America and the Caribbean. It is a joint publication by four regional development banks (RDBs) operating in these regions—African Development Bank (AfDB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), and Inter-American Development Bank (IDB).
“Cities offer access to key infrastructure, institutions, and services for a good quality of life,” ADB President Mr. Takehiko Nakao said. “They can be centers of innovation for a more livable future for all. But realizing that potential requires forward thinking and flexible planning, adequate capacity at the municipal level, and good governance.”
Mr. Nakao took part in a launch event at the IDB headquarters today in Washington, D.C., with the presidents of the other three development banks: Mr. Akinwumi Adesina of AfDB, Mr. Suma Chakrabarti of EBRD, and Mr. Luis Alberto Moreno of IDB.
The world’s urban population has grown from just 750 million in 1950 (or 31% of the total population) to 4.2 billion in 2018 (55% of the total population)—a number that is estimated to reach 5.2 billion in 2030 (60% of the total population). While the majority of leading economic hubs are still in advanced economies, the center of economic activity is moving toward the developing and emerging markets, the report says. Asia and Africa will account for 90% of urban population growth between 2018 and 2050, with more than a third of this growth to happen in just three countries—the People’s Republic of China (PRC), India, and Nigeria.
Although large and still dominant, megacities of more than 10 million people and national capitals are not the fastest-growing urban areas. Urban areas with fewer than 1 million residents account for 59% of the world’s urban population and are experiencing a faster growth rate across the regions, the report says.
Cities need large scale investments to develop and maintain infrastructure and services such as urban transport, water supply, sanitation, and solid waste management. In the face of rapid growth, overstretched services, skills shortages, and increased vulnerabilities to disasters are adding to cities’ environmental stress.
The publication examines the types of policy interventions and approaches needed to promote competitive, inclusive, equitable, and environmentally sustainable and climate-resilient cities—four factors that taken together make cities “livable.”
“RDBs play an important role in identifying, distilling, and diffusing knowledge and actions that can accelerate progress toward creating more livable cities,” the report says. Making cities more livable is one of the seven operational priorities of ADB’s Strategy 2030. ADB’s Livable Cities approach puts people and communities at the center of urban development, and promotes strengthening urban institutions through holistic and participatory urban planning and sustainable financing, and use of data and digital technologies to improve urban services to the residents.
Doing Business Report 2020: Soaring Changes with Soaring Doubts
As Narendra Modi brands his government of making new leaps; similarly, the World Bank’s annually published report, “Doing Business” has...
The Art of Travelling Alone: How to Make the Best of Your Solo Trip
We are currently celebrating Singles’ Day — now one of the biggest shopping holidays of the year — which encourages...
Is this the end of NATO-era?
Money is a very powerful tool, which can easily ruin relations. Different views on money spending can ruin even good...
Venice Is Flooded: A Look at Our Coastal Future
Authors: Arshad M. Khan and Meena Miriam Yust If humans have been lucky, basking in the comforting warmth of an...
ADB Program to Help Improve Education and Health in Armenia
The Asian Development Bank (ADB) has approved a $10 million policy-based loan (in euro equivalent) to assist the Government of...
ICC gives greenlight for probe into violent crimes against Rohingya
Judges of the International Criminal Court (ICC) on Thursday authorized an investigation into alleged crimes against humanity, namely deportation, which have forced between 600,000 and one million Rohingya refugees...
EU chief prosecutor Laura Kovesi needs media freedom to do her job
Last month, Laura Codruta Kovesi, the former chief prosecutor of Romania’s National Anti-corruption Directorate, was officially confirmed as the first...
Europe3 days ago
Why German car giant Volkswagen should drop Turkey
Energy2 days ago
What would it take to limit the global temperature rise to 1.5 °C?
Middle East3 days ago
Iran’s next parliamentary election hinges on economic problems, US sanctions effective
Africa2 days ago
China’s ties with Africa go beyond the “debt trap”
Europe3 days ago
The future of Brexit: Where will Boris Johnson’s “fatal strategy” lead Britain to?
East Asia2 days ago
The Korean Peninsula needs more peace talks rather than game drills
African Renaissance3 days ago
The way out of apartheid South Africa
South Asia2 days ago
India’s Continuing Arrogance in Kashmir