Sunday, November 8, 2015

Big Australian cities – can’t live there, can’t give there

In a strange turn of events, the very success of big Australian cities is likely to become a drag on the innovation they are noted for, as they become more and more expensive to live in and the cost of housing acts to limit the cultural diversity which underpins innovation.

In a recent article on the urbanisation of Australia and the problems this poses for the cost of urban housing costs, Matt Wade, writing in ‘The Sun Herald’ gets straight to the point, ‘Sydney and Melbourne are among the world's most successful cities. Together they generate more than 40 per cent of Australia's economic output and both consistently rate among the most liveable cities on the planet. But their sheer magnetism has contributed to a pressing national challenge: the high cost of housing.’

Sydney skyline near base of Centrepoint Tower

Latest population figures from the Bureau of Statistics show 9.3 million people live in Sydney and Melbourne – four in every 10 Australians. It is extremely rare for two cities alone to account for such a large proportion of a national population.

In comparison, the International Monetary Funds’s figures show Japan's two largest cities, Tokyo and Yokohama, account for less than 10 per cent of the total population. Britain's two biggest cities, London and Birmingham, make up less than 20 per cent of the British population.

Compounding this, when you include Australia's other four state capitals – Brisbane, Perth, Adelaide and Hobart – along with our national capital Canberra, Australia big city population share rises to nearly two thirds of the whole population.

These great cities are crucial to our national wealth and innovation, as well as to the shape of our national culture. The downside is that just at the point that more and more people either want to or need to live in them – or both, they are becoming far too expensive for anyone but the wealthy to inhabit. The likelihood that this will impede their positive role in innovation and wealth generation is high. The fact that the high cost of housing also acts to limit social diversity is also likely to drag down the level of innovation. This is because social diversity, at the boundaries where culture intersect, helps foster innovation by maximising the range of intersecting and overlapping approaches to complex challenges. The interaction this involves leads to a whole that is greater than the sum of the parts.

This article was originally published elsewhere in my blogosphere and has been revised for this blog.

See also

How to run down an essential service – adventures in the crazy world of Centrelink 
‘Of late I have been developing a close one-on-many relationship with Centrelink as I fulfill my destiny of sorting out stuff for my elderly relatives. It reminds me of dealing with Australia Post over many years. Everyone at Australia Post used to bend over backwards to help you. The problem was that their systems were so bad that even their own staff couldn’t get them to work. This is what Centrelink is like. In the crazy world of failing public service systems that are being overtaken by reality, the only solution is a work around. The tick the box approach that is being fostered in the new deskilled public service can’t handle complexity. The test of any system – or policy, strategic plan, program – is how well it handles the unexpected, the unforeseen, reality. This looks like failure to me’, How to run down an essential service – adventures in the crazy world of Centrelink.

Venue lockdown – a blunt instrument for a dire problem
‘The issue of venue lockdown to deal with alcohol-fuelled assaults is becoming a major debate. Of course venue owners are concerned and their argument that the policy will affect the hospitality industry may well be valid – but that, by itself, is not enough. It comes down to how effective the approach is at addressing the problem and how badly the hospitality industry is affected. The question is how finely different kinds of venues are distinguished from each other in a strategy to reduce alcohol-related violence. Dealing with it was never going to be simple or easy. However, like all government policy, it’s all too easy to go for the one size fits all approach which might look good but not work’, Venue lockdown – a blunt instrument for a dire problem.

The power of good policy – historical tax distortions waiting for a fix
‘The heated response to the tax debate around negative gearing debate and capital gains tax shows that if political parties adopt a clear policy, in line with their core values and aligned with popular concerns, then get behind it and explain it, people will respond. For decades negative gearing has been distorting the shape of our cities, our suburbs and our communities. It is an inefficient way to achieve the desired result. These are historical tax distortions waiting for a fix’, The power of good policy – historical tax distortions waiting for a fix.

Unamerican Activities Committee
‘Reading reviews of the new film about the Hollywood screenwriter, Trumbo, I’ve been reminded of the legendary House UnAmerican Activities Committee, set up to hunt reds under the bed – especially screenwriters – in the US in the late 1940s and 50s. Only in America could I imagine something with such a bizarre name. What exactly were ‘unAmerican’ activities – did it include picking your nose in public or forgetting Mother’s Day?’, Unamerican Activities Committee.

Look after pedestrians and the economy will look after itself
‘Public transport is such a central element in a modern city. It has fundamental implications for how productive a city is, how culturally active and just how personally pleasant it is to live and work in’, Look after pedestrians and the economy will look after itself.

Travelling together through the city
‘Public transport is such a central element in a modern city. It has fundamental implications for how productive a city is, how culturally active and just how personally pleasant it is to live and work in’, Travelling together through the city.

Sydney - Australia's most valuable location but public transport its greatest weakness
‘A massive weakness only too familiar to anyone who lives in or has lived in Sydney could derail the whole positive effect of economic growth within different mega regions inside Greater Sydney and hold back innovation and economic productivity. This has serious implications not just for Sydney or New South Wales but for the national economy. Cities have always been serious business but this just got a lot more so’, Sydney is Australia's most valuable location but public transport is its greatest weakness.

Our capital cities are growing and produce most of our income
‘The city is a critical place for cultural life and for the diversity that propels it. It's interesting to see the overwhelming significance of cities in an economic sense as well’, Our capital cities are growing and produce most of our income.

The central importance of cities to the modern economy
‘It is becoming increasingly clear how important cities are in the contemporary economy. Underpinning this is the absolutely central importance of the growth of the knowledge economy and the innovation, collaboration and interaction it depends on. This is a reality that politicians have to grasp if we are going to see good policies that benefit Australia over the next decades. Unfortunately I think that many are still operating with a view of the economy which was out of date at least a decade ago’, The central importance of cities to the modern economy.

Creating cities by reinventing them – ‘Creating Cities’ reviewed
‘At first glance Marcus Westbury’s ‘Creating Cities’ book looks small, but it’s far bigger than it looks. The book is about re-energising cities by reinventing them but it’s starting point is a deep appreciation of the particular regional city of Newcastle. The revival of Newcastle is a reflection of the more general trend towards the revival of regional centres in Australia. Cities are crucial to the innovation and creativity that interaction and partnerships based on physical proximity can produce – whether major capital cities or regional cities. The efforts at revival all reflected the critical importance of cities. Each in its own way draws upon creativity and innovation and the cultural diversity which underpins it to create places which are pleasant and interesting to live in and to drive economic prosperity’, Creating cities by reinventing them – ‘Creating Cities’ reviewed.

The clever business of creativity: the experience of supporting Australia's industries of the future
‘The swan song of the Creative Industries Innovation Centre, ‘Creative Business in Australia’, outlines the experience of five years supporting Australia’s creative industries. Case studies and wide-ranging analysis explain the critical importance of these industries to Australia’s future. The knowledge economy of the future, with its core of creative industries and its links to our cultural landscape is both clever and clean. Where the creative industries differ completely from other knowledge economy sectors is that, because they are based on content, they draw on, intersect with and contribute to Australia’s national and local culture’, The clever business of creativity: the experience of supporting Australia's industries of the future.

My nephew just got a job with Weta – the long road of the interconnected world
‘My nephew just got a job in Wellington New Zealand with Weta Digital, which makes the digital effects for Peter Jackson’s epics. Expertise, specialist skills and industry pockets can occur just about anywhere, as long as you have connectivity, talent and a framework of support that makes it possible. This is part of the new knowledge economy of the future, with its core of creative industries and its links to our cultural landscape. Increasingly the industries of the future are both clever and clean. At their heart are the developing creative industries which are based on the power of creativity and are a critical part of Australia’s future – innovative, in most cases centred on small business and closely linked to the profile of Australia as a clever country, both domestically and internationally. This is transforming the political landscape of Australia, challenging old political franchises and upping the stakes in the offerings department’, My nephew just got a job with Weta – the long road of the interconnected world.

Eating out in a cold, funky city – Canberra comes of age in the Asian Century
‘On a day and night which was bitterly cold – as cold as Canberra has been this year, with the hint of snow clouds overhead – I was reminded why I live here. As we wandered along after a full day of cultural institutions and design events, looking for somewhere to eat we impetuously popped into Restaurant Eightysix and even more impetuously were able to get a table. I had forgotten reading somewhere that famed long-former Adelaide chef, Christine Manfield was here for the month, cooking up an Asian-inspired menu. How much better could it get?’, Eating out in a cold, funky city – Canberra comes of age in the Asian Century.

Creative industries critical to vitality of Australian culture
‘The developing creative industries are a critical part of Australia’s future – clean, innovative, at their core based on small business and closely linked to the profile of Australia as a clever country, both domestically and internationally.’ Creative industries critical to vitality of Australian culture.

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