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 cities fill tech gaps, power of smart cities unleashes
Governing Smart Cities, a report released today by the World Economic Forum, provides a benchmark for the ethical and responsible use of smart city technologies by looking into the inner workings of 36 Pioneer Cities. The authors of the report seek to help city leaders identify gaps, protect long-term interests and keep up with the pace of technology.
According to the report, cities of all sizes, geographies and levels of development have serious governance gaps, such as the failure to designate a person accountable for cybersecurity or to assess privacy risks when procuring new technology systems. However, leaders can close these gaps and protect long-term interests by acting now.
Written in partnership with Deloitte, the report follows the call to action from G20 ministers in 2019 that resulted in the creation of the G20 Global Smart Cities Alliance. The Alliance and its partners represent over 200,000 cities, local governments, leading companies, start-ups, research institutions and civil society communities. It acts as a platform to help cities strengthen their knowledge, expertise and governance of smart city technologies. The Forum is its secretariat.
The 36 Pioneer Cities surveyed span six continents and 22 countries, and have populations ranging from 70,000 to over 15 million. Policy experts and government officials were interviewed from January to March 2021 to assess the implementation of a set of five essential policies identified by the G20 Alliance last year.
Nearly all the cities surveyed – including those that are generally regarded as leading global cities – have critical policy gaps related to their governance of smart city technologies
Despite an unprecedented increase in global cybersecurity attacks, most cities have not designated a specific government official as ultimately accountable for cybersecurity.
While the majority of cities recognize the importance of protecting the privacy of their citizens, only 17% of cities surveyed carry out privacy impact assessments before deploying new technologies.
Less than half of the cities surveyed have processes in place to ensure that technologies they procure are accessible to elderly residents or individuals with limited physical abilities.
Open data policy is perhaps the only area in which most cities in the sample have achieved a level of basic implementation. Even here, only 15% of the Pioneer Cities have integrated their open data portals with their wider city data infrastructure, which is a necessary step towards making a city “open by default”.
“Cities are continuing to invest heavily in new technologies to automate and improve city services and urban life. Yet our findings validate our fears that most cities are falling behind when it comes to ensuring effective oversight and governance of these technologies,” said Jeff Merritt, Head of Internet of Things and Urban Transformation, World Economic Forum. “The G20 Global Smart Cities Alliance is working with cities across the globe to address this gap, beginning with more than 15 policy workshops with city officials this summer.”
“Cities have an array of opportunities to become more resilient and sustainable. Technology is an enabler but, to fulfill its full potential, Cities need to revise their governance, operational, and financing models. Here lies the biggest challenge Cities face. Deloitte is proud to have worked with the Forum in this initiative. It is fundamental for us all to gain consciousness of the complexity of the issues and focus on how the moment we are all living can be a key opportunity”, said Miguel Eiras Antunes, Global Smart Cities Leader, Deloitte Global. “Now is the moment for a great urban transformation. Addressing urban challenges through the lenses of sustainability, inclusion, and technology is critical to develop and implement a roadmap to guide cities with their governance of smart technology and make an impact that matters.”
How to take action
The report concludes that city leaders and officials need to take action before these governance gaps become material risk and affect residents. The report’s authors also call for national policymakers, civil society and the business community to help support local governments in overcoming these challenges. Inclusion, data privacy and cybersecurity attacks are top concerns and the G20 Global Smart Cities Alliance has a mandate to help cities close the governance gaps that this report has uncovered. Cities looking for assistance in identifying and addressing their policy gaps are encouraged to contact the Alliance via their website.
New Report Shows Shape of Urban Growth Underpins Livability and Sustainable Growth
A first-of-its-kind World Bank analysis, of the shape and growth of nearly 10,000 cities between 1990 and 2015, finds that the most successful urban areas are those that connect their growth to economic demand and then support this with comprehensive plans, policies and investments that help avoid uncontrolled sprawl.
The new report, Pancakes to Pyramids – City Form for Sustainable Growth, analyzes the dynamic, two-way relationship between a city’s economic growth and the floor space available to residents and businesses. It finds that a city is most likely to be its best version when its shape is driven by economic fundamentals and a conducive policy environment – namely, a robust job market, flexible building regulations, dependable public transit and access to essential services, public spaces, and cultural amenities.
Ultimately, getting livable space right, hinges on how a city manages its growth as populations and incomes increase, factoring in three dimensions of expansion – horizontal, vertical or within existing spaces (known as infill), the report finds. This will be key as cities, on the frontlines of the COVID-19 crisis, begin planning for a long-term, resilient, and inclusive recovery.
“Cities are at the frontier of development; they are where people go to chase their dreams of a better life for themselves and their families,” said Juergen Voegele, Vice President for Sustainable Development, World Bank. “This report helps us understand why a city grows outward, inward or up. As we support countries with their COVID-19 recovery efforts, this will also help us reflect on what makes a city livable and remind us that well-planned urban growth is good for both people and planet.”
In the average Sub-Saharan African city, 60 percent of the population lives in slums—a much larger share than the 34 percent average in cities in developing countries. The lack of floor space takes a severe toll on livability—with major consequences in times of pandemics like COVID-19. Many South Asian cities face similar issues.
Horizontal growth is inevitable for most cities. People will continue to migrate to urban areas for opportunities and a better quality of life, so it is crucial for cities to plan for this trend. As urban populations grow, one way to create more space per inhabitant is by building up instead of out. This could also help reduce crowding, discourage long commutes, draw more people to public transit and drive down greenhouse gas emissions. But building tall, or accommodating more people in a city, is dependent on economic demand and the business environment as it requires better technology, large investments, and higher returns on capital.
“Understanding the multiple drivers of city growth—a precondition for livable density in cities—can help city leaders focus on the right policy actions,” said Somik Lall, co-author of the report. “If managed well, cities that take a more pyramid-like shape can provide an impetus to accelerate sustainable development by getting people out of cars, cutting commute times, and limiting greenhouse gas emissions.”
Today, around 55 percent of the world lives in urban areas. By 2050, this number is projected to surpass two-thirds of the global population, with much of the new urbanization happening in Sub-Saharan Africa and South Asia. While such growth signals opportunities and better livelihoods for millions of people, it also puts immense strain on cities, especially in countries that contend with low incomes and weak institutional and fiscal capabilities.
By describing how economic productivity shapes decisions by households and firms to locate in cities, and how the quantity and spatial distribution of urban floor space respond to these changes in demand, the report aims to help decision makers sort through competing legal and regulatory approaches, evaluate their investments in infrastructure, and mobilize finance for durable urban investments, particularly for essential services such as transport, water provision, solid waste management, and sewage removal and treatment.
First international online forum Smart Cities Moscow
The first international online forum Smart Cities Moscow ended in Moscow. 86 speakers from Russia, China, Switzerland, Canada, Spain, the United States, Sweden, and other countries spoke at the forum’s business program. More than 193,000 people watched the broadcasts of the panel discussions and sessions.
“A modern approach to digitalization is unthinkable without exchange of experience and conversation between cities. Moscow, being one of the world leaders of digital transformation, acted as a platform for such a conversation, and it is important for us that the international community responded with interest to this initiative. Recent years have especially shown how important it is to develop the IT infrastructure of cities and create online services focused on the daily needs of city dwellers. Synchronization and joint efforts will make megacities even more sustainable, smart and comfortable for living,” said Eduard Lysenko, Minister of the Moscow Government, Head of the Department of Information Technologies of Moscow.
The need for global communities to cooperate in creating and developing smart cities was also stressed by Juwang Zhu, director of the UN Department of Economic and Social Affairs’ Division of Public Institutions and Digital Government.
“We at the UN support universal interaction in terms of the implementation of new technologies. I am glad that the Smart Cities Moscow forum will now be an annual event. This is very important: to encourage cities to exchange practices, to develop digitalization with the whole world, so that there would be more and more smart cities,” Juwang Zhu said, adding that the greatest benefit of using new technologies was seen by countries during the fight against the pandemic.
The business program of the forum consisted of 15 sessions divided into three main directions: “Smart City Infrastructure and Technologies”, “Smart City for Life”, and “Sustainable Development of Smart City”. The experts shared their experiences of using digital solutions in transport, urban planning, tourism, ecology, energy and other sectors important for the cities. Separate sessions were devoted to piloting 5G networks, application of artificial intelligence in urban processes and big data analysis for urban development planning.
Best practices and ecosystem approach to the digitalization of cities were discussed during the plenary session of the forum. Mayor of Moscow Sergey Sobyanin spoke about the experience of introducing technologies in the capital and creating digital platforms for residents. He noted that Moscow digital projects cover absolutely all spheres of life, focusing primarily on human needs. Representatives of the relevant departments of the Moscow City Government spoke in more detail about the capital’s IT projects during the panel discussions.
Mr. Chen Jining, Mayor of Beijing, Mr. Bakytzhan Sagintayev, Mayor of Almaty, Mr. Saeed Belhoul, Director of Electronic Government Operations of Dubai Telecommunications Regulatory Authority, Mr. Mohamed Salah Eldin, Project Manager for the construction and formation of the smart city Nour (new administrative capital of Egypt) and Mayor of Fort Lauderdale Dean Trantalis also shared their experience at the plenary session.
One of the key events of the forum was the awarding of two certificates of compliance with international ISO standards for sustainable and smart cities to Moscow. “Until now, there has never been a precedent in history when both of these certificates were awarded simultaneously,” said Patricia McCarney, president of the International City Data Council (WCCD).
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