WomenCorporateDirectors, the global organization dedicated to expanding women corporate directors through leadership, diversity, education, and best practices in corporate governance, discussed the impact of migration to cities around the world creating Mega-Cities and the implications they will have for corporate directors in the future:
"As the trend toward urbanization explodes, particularly in the emerging world, how can corporate leaders prepare themselves? What does the growth of cities that are even more powerful than their host states mean for business? And what are the effects of this trend on markets, security, infrastructure, and the workforce? “This demographic shift is a key mega-trend for global business,” said Susan Stautberg (pictured), co-founder and global co-chair of WomenCorporateDirectors. “Directors at companies around the world must understand both the risks and the opportunities in this new breed of cities.”
“One in 25 people in the world lives in Chinese cities,” said Elaine LaRoche, a former director of China Construction Bank. “In 20 years, over 220 Chinese cities will have populations of over a million; there will be 23 cities over five million and several over 20 million, and the Chinese are even studying the feasibility of cities of over 40 million. Will public sector funding and political institutions be able to keep pace? Will they provide the necessary public services to assure continued social stability and relatively full employment that are the primary goals of the Chinese government?”
As urban centers develop a stronger field of gravity within their countries, “maybe we don’t need a G20 of nations anymore – maybe we need a G20 of cities,” said Annette Schömmel, founder of Arthesia and director of Kuoni Reisen Holding. “I’m not so sure that the U.K. will be a member of the G20 in ten years, but I’m pretty sure that London will still be a mega-city even 50 years from now.”
“Transportation is a necessary part of a vital city,” said Linda Goodspeed, Vice President of Information Systems for Nissan North America and director of American Electric Power and Columbus McKinnon Corporation. “Developing countries like India will increase utilization of computers and electronics, which means that energy needs are going to put a tremendous drain on the current generation and distribution systems,” she explained. “Energy storage is going to become more important than ever before.”
“The biggest question for directors is: how do you unlock the opportunities?” said Ms. Schömmel. “Cities will be the place of greatest innovation, growth, and opportunities – no industry or company can ignore the trend. To build smart cities, the demand for solutions in the mobility, energy, health, education sectors, etc. will increase. Companies can profit from their innovative power to develop smart solutions in cooperation with inhabitants and municipalities. However, much more data is needed to fully understand the performance of cities.” Some argue that businesses can actually help bring solutions to these new cities more efficiently than their local governments can. “Business should be at the forefront,” Ms. LaRoche argued, “and can be much more nimble and much more forward-thinking than politicians in any of these countries. Corporations have an opportunity to really be the global architects of many of the things that were, in the past, left to the politicians.”
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