The Model City of the 21st Century

The Model City of the 21st Century

Yesterday I attended a thought provoking conference sponsored by the Rockefeller Foundation and Tulane University – New Orleans as the Model City for the 21st Century: New Concepts of Urban Innovation.  Amy Liu, Deputy Director of the Brookings Institution, made a keynote presentation. 

She identified three factors essential for model cities in the modern era.  The first is prosperity, manifested in a variety of measures including productivity, inclusiveness, and environmental sustainability.  Second is resilience, or the ability to bounce back from adversity.   A city must shore up the factors that let you bounce – innovation, human capacity, infrastructure, and amenities that lead to a desirable quality of life.  Underlying all of these is good governance.  The third essential ingredient is the ability to move to the next economy.   The future economy will entail a new growth model, as it is becoming increasingly apparent that the force that brought us out of previous economic slumps – domestic consumption – will not be our answer this time.   

Two key sectors were identified.  We must tap into consumer demand outside of the United States, rebalancing the economy to be more export oriented and less consumptive.  Exports represent a tremendous opportunity for small and medium size businesses, which now represent only a tiny percentage of our international trade.  Moreover, jobs in logistics and trade are high paying in relation to many other industries.  Secondly, we must move toward a low carbon economy, taking advantage of changes already underway in the energy sector.  The demand for green products and a sustainable environment can generate activity in many areas – finance, higher education, science/engineering, and entrepreneurship. 

New Orleans has strategic strengths to build upon, and a post Katrina spirit to make us a model city.

Forbes' Best Places for Business and Careers

Forbes’ Best Places for Business and Careers

Forbes just released another ranking, The Best Places for Business and Careers.  New Orleans rated very poorly, coming in at #190 out of 200 large metro areas.  While a low ranking is cause for concern in the economic development community, many seem to disagree with the assessment.  New Orleans has become a hub of entrepreneurial activity.  Educated, engaged young professionals are drawn to the city by the desire to make a difference. 

How was this list derived? As Forbes explains, “we ranked areas on 12 metrics including costs (business and living), job growth (past and projected), income growth, educational attainment and projected economic growth.  We also factored in quality-of-life issues like crime, cultural and recreational opportunities as well as net migration patterns. Lastly we examined the percentage of subprime mortgages handed out over a three-year stretch and the number of highly ranked four-year colleges in the area, per our annual college rankings.” While the exact methodology is not explained, metro rankings are presented on each of three scales, cost of doing business, job growth, and educational attainment. 

New Orleans didn’t rate too poorly on the Cost of Doing Business, an index based on the cost of labor, energy, taxes, and office space.   According to Sperling’s Best Places, our overall cost of living index (which covers overlapping variables) is 91, or 9% lower than the national average.

We ranked much lower, 137th, on Projected Job Growth, based on 3 year annualized figures.  It is not possible to examine the data, which is attributed to Moody’s Economy.com, a proprietary source. This ranking seems a bit curious, given that New Orleans is perceived to be riding out the recession better than most places, largely due to post hurricane spending. 

Lower still is Educational Attainment, defined as the share of the population over 25 with a bachelor’s degree or higher.  We ranked 147th.  There is no arguing with the stats here – only 23.5% of our adult population has a college degree compared to 27.7% nationwide. 

As for the other variables, crime likely cancelled out any plusses derived from our culture, in-migration, or dearth of subprime lending.  We had 3 universities listed in Forbes’ top 600 – Tulane (168th), Loyola (280th) and Dillard (494th).    

Let’s keep promoting the non-statistical stories that highlight our positive trends!