Liveability Framework: Part 1 – Achieving a Competitive Economy

CLC launched the refreshed Liveability Framework (LF) at the World Cities Summit in June 2024. This is the first of a 10-part series on the LF to better showcase its various components.

August 2024 | Report

Introduction

Liveability in urban environments is not a static concept. It is a continuously evolving construct that changes with each city’s development phase, shaped by (and also shapes) emerging individual perceptions and aspirations on urban lived experiences, and influenced by dynamic external forces. Guided by current and emerging challenges, the LF serves as a practical (non-prescriptive) reference for city leaders, policymakers and planners to plan liveable and sustainable cities.



In the LF diagram (above), the three critical liveability outcomes – Competitive Economy, High Quality of Life and Sustainable Environment - are represented as intersecting circles. Collectively, they establish a holistic urban ecosystem that contributes to overall liveability in a city over the long run. Surrounding these is a "ring" structure consisting of the three complementary systems that provide the enabling conditions to achieve and sustain the outcomes.

Achieving a Competitive Economy



The economic competitiveness of a city plays a pivotal role in shaping and supporting the lives of its residents. A city thrives with economic growth and access to good quality jobs, which in turn pave the way for an improved standard of living and enhanced liveability.

Some current and emerging trends that shape economies today include:

  • Ageing population and workforce
  • Global competition for talent
  • Vulnerability to external shocks
  • Environmentally sustainable practices


Hence, a healthy economy must do more than just function; it needs to be competitive and sustainable. The concept of a competitive economy goes beyond conventional economic measures to encompass factors that include “dynamism” and “resilience”. Being competitive not only involves attracting global talent and continually creating good job opportunities, but also continued investment in workforce development through the provision of diverse educational pathways and training programmes that equip workers with relevant skills to withstand future economic shifts. Fostering an innovative and inclusive business environment that is welcoming to different business cultures and working lifestyles is also essential to enhance well-being and satisfaction of workers and their families. The social and cultural intangibles of an economy are also important in attracting and retaining local and global talent.

Spotlighting Liveability Outcomes and their Intersections

The refreshed LF emphasises the need to harness the synergies and manage the trade-offs between the three liveability outcomes. The pursuit of economic competitiveness not only creates a basic foundation for the city’s economy to grow, it also allows for other liveability goals to be achieved. Conversely, there are also inherent tensions that can arise, especially given the constraints of limited land and resources.



For example, in today’s context, the economy and environment have become more deeply intertwined. The growing green economy not only presents growth opportunities for Singapore; it also provides the economic impetus to create a more sustainable and liveable environment. Government agencies such as the Economic Development Board (EDB) and National Environmental Agency (NEA) administer grants and funds to support companies in reducing emissions and adopting energy-efficient technologies. However, such sustainable solutions may entail the rise of new costs to both businesses and consumers, especially in the near term. For example, the carbon tax introduced in 2019 may result in increased costs from carbon pricing being passed on to individuals and households through utility bills. Therefore, implementing appropriate regulatory measures, being transparent in communicating the rationale for carbon pricing, and providing timely incentives and subsidies are equally critical in softening the impacts of trade-offs in the green transition.

Conclusion

Overall, maintaining a competitive economy remains crucial for cities to attract new sectors, investments and talent that create further growth opportunities for its residents. It also provides space for strategic cross-sectoral partnerships to develop which in turn give rise to innovative solutions that can help manage some of the trade-offs involved in achieving different liveability outcomes.

For more information on the Liveability Outcomes in the LF, please refer to Chapter 2: The Liveability Outcomes here.

If you prefer to download the full book, please click here.