Once a city determines what it wants to be known for, one way to approach economic development is to take the attitude that the business community as a whole is a client and that economic development is about making that client successful. Bogotá does so by providing a one-stop shop for investors, including help with permits and training. And in Rio de Janeiro, as one official put it, “Our main question is how can we, the city, serve them well?”
Another critical element is to plan for change. Successful cities anticipate how economic growth will influence the changing needs of the city. Environmental management should be integrated into the plan; this means developing an agenda that uses a variety of policies—such as regulations, zoning laws, market mechanisms, and incentives—to set environmental goals and standards. It is better (and cheaper) to deal with green issues, such as air quality and land and water use, before they become problems. All too many cities have had to take expensive remedial action to fix problems that could have been prevented.
Traffic congestion, for example, is not only time consuming, frustrating, and ups the cost of doing business, but the resulting air pollution also damages residents’ health. Sometimes cities can make significant improvements just by using current infrastructure better. Singapore’s congestion system has proved that pricing can reduce traffic and improve its flow. High-density development—building up, rather than out—is also a valuable strategy. In effect, it uses land more intensively, and land is one resource that cannot be grown.