Urban metropolitan economy:
Milan (Italy) and Shanghai (China)
Urban economy: Milan (Italy)
ETHOS: connotations
Lifestyle
Finance
Design
Fashion
Cost vs quality
Traffic and pollution
Selected indicators
Indicator
Ranking Indicator
Rankin
g
Waste
7 (33,4%)
Renewable energy (sm/1000 in) - T
12 (0,06)
Sustainable mobility
3
Renewable energy (sm/1000 in) - Ph 4 (12,74)
Car/100 in.
5 (55)
Energy policy
5
Car free area (sm/in.)
7 (0,29)
ISO 14001
6
Limited traffic area (sm/in.)
11 (0,10)
Participation policy
7
Bikeway (m/in)
8 (1,80)
Green procurement
9
Public green area (sm/in.)
3 (15,60)
Source: Legambiente, 2011
Milan and its Province: land use
Urban area: 37%
Rural area: 40%
Green area: 7%
City of Milan and its province: population trend
Source: ISTAT, 2012
Milan and its Province: population density
City of Milan and its province: population trend
Foreign population
2003
2009
Growth
Province of Milano
169982
371670
118,65%
Milano
99987
181393
81,42%
First ten and last ten ethnic group and number of persons (MILAN, 2009)
Filippine
33753
Egitto
Cina Rep.
Popolare
28666
Perù
17674
Ecuador
13539
Sri Lanka
13339
Romania
12146
Marocco
7634
Ucraina
5732
Albania
5286
18918
Source: ISTAT, 2012
Yemen
Corea del Nord
Rep.
Centrafricana
Arabia Saudita
Monaco
Barbados
Maldive
Laos
Bahamas
Saint Kitts e Nevis
4
4
3
3
2
2
1
1
1
1
Urban economy: Shanghai (China)
In 1949, Shanghai was divided into 20 urban districts and 10 suburban districts.
By the end of 2008 Shanghai had 18 districts and 1 county. There were 109 towns,
3 townships,101 sub-district committees, 3,579 neighbourhood committees and
1,781 villagers’ committees.
1949: area covered by the city only 636 square kilometers. In 2008 the city total
area was 6,340.5 square kilometers (0.06% of China’s total territory). Shanghai
extends about 120 km from north to south and about 100 km from east to west.
Shanghai and demographic trends
In 2005 a survey conducted by the Shanghai Municipal Government revealed that:
•8.9% of the city’s long-term residents (1.58 million), were aged 0-14;
•79.2% (14.08 million) were aged 15-64;
•11.9% (2.12 million) were aged 65 and above.
Due to the constant inflow of people from other parts of the country, the population
in Shanghai keeps growing.
When Shanghai was turned into a city, it had a population of less than 100,000. By
1949, Shanghai had a population of 5.2 million.
By the end of 2008, however, the city’s permanent residents had grown to 13.9104
million (1% of China’s population). On average, the city had 2,978 long-term
residents per square kilometre of land.
In 2008, the average life expectancy of local citizens stood at 81.28 years - 79.06
for males and 83.5 for females.
Shanghai: education and employment
•18.1% of population aged six and above had received education at college level;
• those with senior high school education accounted for 24.8% of population;
• in 2008, 99% of school-age children attended the nine-year obligatory education
• 97% of junior middle school graduates entered senior high schools;
• 83.8% of graduates of senior high school enrolled into colleges.
By the end of 2008, Shanghai employed 9.4607 million people.
• 1.4073 million, or 14.9%, were hired by the state enterprises and institutions;
• 1.8888 million, or 20%, were employed by collectively-owned work units;
• 1.3279 million, or 14%, worked in overseas-funded enterprises;
• 2.9968 million, or 31.6%, worked at private businesses.
• the unemployment rate in the city’s urban areas stood at 4.2% in late 2008.
Shanghai: economic sectors’ trends
1990
1995
2000
2005
First industry
4.3
2.5
1.8
0.9
Secondary
industry
63.8
57.3
47.6
48.2
Tertiary industry
31.9
40.2
50.6
50.2
Source: Shanghai Municipal Government, 2012
The socialist economic policy model and the
economic systems in transition from socialist to
market-oriented systems
Preliminary definitions
Different stages of Economic Development according
to UN
- More developed countries (MDCs)
- Less developed countries (LDCs)
- Least developed countries (LLDCs)
Criteria of classification:
- GDP (Gross Domestic Product) per capita
- political and economic stability
- human vulnerability (Human Development Index)
NICs
Is it still a living matter?
Towards a new approach: newly industrialized countries (NICs).
General success factors
-
Political stability in policies affecting their development
-
Economic and legal reform
-
Entrepreneurship
-
Planning
-
Outward posture
-
Factors of production
-
Industries targeted for growth
-
Wide incentives
-
Privatization of state-owned enterprises (SOEs)
Demand: pull factors
Difficulties to estimate market potential due to the coexistence of:
a)
Rural/agricultural sector
b) Urban high-income sector
c)
Transitional sector (periphery, slum…)
Percentage of household expenditures
Country
Foo
d
USA
6,9%
Alcohol/tobac
co
Clothin
g
Housin
g
Healt
h
Transpo
rt
Communicatio
ns
Leisu
re
Educati
on
2,1%
4,4%
17,3%
19,4%
11,4%
1,6%
9,0%
2,6%
Mexico
24%
2,5%
3,0%
13,7%
4,8%
17,4%
1,7%
2,5%
3,9%
Brazil
24,6
%
1,9%
3,5%
15,1%
4,4%
12,9%
5,3%
33,3%
7,1%
Germany
11,5
%
3,5%
5,1%
24,6%
4,7%
13,4%
2,9%
9,5%
0,5%
Russia
28,5
%
2,3%
9,6%
12,8%
2,7%
12,0%
4,2%
7,3%
2,7%
Turkey
24,8
%
4,2%
6,1%
27,0%
2,2%
13,5%
4,2%
Egypt
39%
2,2%
6,7%
20,3%
4,6%
6,5%
2,3%
2,4%
3,8%
Nigeria
39,4
%
2,5%
7%
17,6%
4,5%
7,2%
2,2%
2,4%
3,9%
South
Africa
20,8
%
4,7%
5,4%
Source:
12,8% Cateora,
9,3%2009 14,1%
3,9%
3,9%
3,3%
2,2%
2,2%
Transition economies
The main ingredients of the transition process are:
Liberalization: the process of allowing most prices to be determined in free markets
and lowering trade barriers that had shut off contact with the price structure of the
world's market economies.
Macroeconomic stabilization: primarily the process through which inflation is brought
under control and lowered over time, after the initial burst of high inflation that follows
from liberalization and the release of pent-up demand. This process requires discipline
over the government budget and the growth of money and credit (that is, discipline in
fiscal and monetary policy) and progress toward sustainable balance of payments.
Restructuring and privatization: the processes of creating a viable financial sector and
reforming the enterprises in these economies to render them capable of producing
goods that could be sold in free markets and of transferring their ownership into private
hands.
Legal and institutional reforms: These are needed to redefine the role of the state in
these economies, establish the rule of law, and introduce appropriate competition
policies.
Selected area: Eastern Europe and Baltic
States
Selected area: Eastern Europe and Baltic
States
Key-elements:
High risk with high opportunity
Economic reform (from state-owned companies to liberalization)
Employment to population ratio
Source: UNDP, 2010
Selected country in Eastern Europe: Estonia, Latvia, Lithuania
Selected indicators
Es
La
Li
GDP (average annual growth)
3,2
5,6
3,2
GNI per capita (PPP at current
international $)
2203
0
2102
0
2276
0
Agriculture (% of GDP)
4
4
4
Lending interest rate (%)
Industry (% of GDP)
29
28
28
Ease of doing business (1=most
business-friendly  Singapore)
21
25
27
Services (% of GDP)
68
74
69
Domestic credit to private sector (% of
GDP)
79,3
67,7
51,3
Time to pay taxes (h)
85
264
175
Document to export (number)
3
5
5
Competitiveness index
32
52
48
Document to import
4
6
6
Unemployement
12,5
15,4
15,4
Export value index (2000 = 100)
436,
4
702
790
Non official payement to public
o.
3,4
10,2
11,3
Import value index (2000 = 100)
347,
7
505
602
Inflation, consumer prices (annual %)
Big Mac Index: under (-) or over (+)
evaluation of currency vs US$
Source: World Bank, 2012
3,9
2,3
3,1
-
33,3
(u)
31,3
(u)
5,7
5,5
6,0
The emergent economic powers (Brazil, Russia,
India, China and South Africa = BRICS)
BRICS at a glance
Brazil, Russia, India, China, South Africa are considered the most solid
economic power today
World ranking of BRICS
Brazil
Russia
India
China
S.
Africa
Surface area
5th
1st
7th
4th
25th
Population
5th
9th
2nd
1st
25th
0,9%
(7,5%)
3,4%
(4,5%)
3,2 %
(10,5%)
7,8%
(10,4%)
2,5%
(3,1%)
GDP per capita
90th
83rd
156th
113th
77th
Human Development
Index
84th
66th
134th
101st
123rd
GDP growth 2012 (2010)
Source: World Bank, 2012
Basic macroeconomic data
Added value per sector to GDP creation
Brazil
Russia
India
China
S.
Africa
Agriculture (% of GDP)
5
4
17
10
3
Industry (% of GDP)
26
37
26
47
28
Services (% of GDP)
69
59
57
43
69
Source: World Bank, 2012