Policies to Enhance City Attractiveness: Achievements and New Challenges

Abstract

A major change in urban governance, particularly by old industrial cities that have experienced an unprecedented magnitude of industrial decline, has been the adoption of attempts to achieve economic regeneration by promoting cities as attractive locations for new businesses and workers that belong to the knowledge economy. This paradigm shift in urban policy has posed a formidable challenge for planners, because traditional policies, particularly redistributional measures, have either become obsolete or ineffective under current circumstances where many cities are fiercely competing for internationally mobile capital and talent. It has become clear that urban economic regeneration demands a pro-active and pro-growth approach which encourages wealth creation in the private sector. Such an approach necessitates, first, innovative mobilisation of diverse policy tools and resources, such as: flagship property developments in city centres with spectacular architectural designs; establishing new cultural facilities, hosting major cultural and sport events, festivals and fairs; promoting public art, preserving and restoring heritage; and city branding. Second, close partnership with the private sector to reflect its needs and interests in policy planning is increasingly becoming a key feature in the institutional framework for regeneration. Partnership and entrepreneurialism are the guiding principles in these coalitions. This market-led approach has also changed the role that governments (central and local) perform – as enabler and facilitator, rather than regulator and provider.