Global economics
For the first time in human history, people living in cities outnumber those that don’t. This will have an enormous impact on how we will occupy this planet that is our home.
Smart Cities come in many shapes and sizes. They range from existing cities with added smart features to cities built from scratch with custom-made solutions to known problems.
Why is this research important?
The Smart City gives humanity our best chance to survive and prosper. And from cities with centralised top-down management, to those with localised, citizen-led bottom-up approaches.
A key factor driving the case for Smart Cities is urbanisation. The percentage of people living in cities is increasing as a proportion of a growing total global population.
Projected growth in global city populations. Around 65% of the world's population will live in cities by 2045.
Why are cities so important?
Cities are recognised as economic growth engines that generate an estimated four-fifths of global gross domestic product (GDP). They also outperform their country’s rate of growth. Smart Cities are all about improving productivity and GDP.
What is the role of professional accountants in Smart Cities?
So how can professional accountants support organisation in a way that creates a positive impact?
- by providing financial management for an increasing and varied pool of smart cities
- getting value for money for technology
- driving greater fiscal responsibility for cities
- breaking down silos in the operating model.
"One of the models being explored around the world to drive growth is to give cities greater autonomy in managing their own activities and budgets."
Clashes of interest
Increased urbanisation – linked to increased industrialisation – has created catastrophic levels of pollution particularly in larger and mega-cities. This situation is untenable. That’s why Smart City developments offer us a way of reconciling the apparent clash of interests between the city as an economic engine and as a place for life to flourish.
The report focus on India examines a specific scenario where the accountancy community can be part of the solution in simplifying the move towards Smart Cities.