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Table of ContentsAbout World Governments SummitForewordTopicsAbout KPMG Lower GulfAcknowledgementsSourcesExecutive SummaryPart I: Future of CitiesPart II: Urban Economic Growth 4636384281024 The World Governments Summit is a global platform dedicated to shapingthe future of governments worldwide. Each year, the Summit sets the agendafor the next generation of governments with a focus on how they can harnessinnovation and technology to solve universal challenges facing humanity.The World Governments Summit is a knowledge exchange center atthe intersection of government, futurism, technology, and innovation.It functions as a thought leadership platform and networking hub forpolicymakers, experts and pioneers in human development.The Summit is a gateway to the future as it functions as the stage foranalysis of future trends, concerns, and opportunities facing humanity.It is also an arena to showcase innovations, best practice, and smartsolutions to inspire creativity to tackle these future challenges.To Inspire and Enable the NextGeneration of GovernmentsAbout WorldGovernments Summit 5 This KPMG paper, the Future of Cities andUrban Economic Growth, is published incollaboration with the World GovernmentsSummit. It aims to provide practical advice forcity leaders, administrators, and stakeholdersengaged in citizen-centric urban planninggeared towards sustainability, resilience,safety, inclusivity, and cultural vibrancy.It was inspired by questions arising fromdiscussions carried out at the KPMG Centre ofExcellence for Infrastructure and Cities (Toronto)and builds on previous reports: KPMG-WorldGovernments Summit papers in the Future ofCities series, Principles for Digital Transformationin Cities (2022) and Perspectives on GovernmentServices, Cities, and Technology (2019).The findings and recommendations presentedare intended to have a long, interactive life;spark debate in panel discussions, workshops,and across media platforms; and take theconversation around these issues to new levels.Today’s context is a daunting one for cities. The hurdlesare multiple and often inter-related: relatively highenergy costs, inflation and interest rates; a lack of skilledworkers; rising inequality in income and social inclusion;and mass migration. Additional, existential threats(climate change, cybersecurity, artificial intelligence (AI),and global or regional conflict) may lead to the perceptionof ‘perma-crisis’, a continual state of disruption.City-specific problems, particularly in the first and thirdworlds (but less so in emerging countries), include:declining physical infrastructure, homelessness, lackof affordable housing, small business jeopardy, lackof green spaces, and lack of reliable broadband.Foreword The report examines ongoing attempts at urban branding and digitalization, usingcase studies drawn from around the world. It starts by describing city asset-mapping processes that ensure authentic bases for identity building, and ways inwhich the public can be involved to promote citizen support.Methods for addressing urban challenges via smart city technologies andinnovations are then surveyed and critiqued, followed by consideration of issuesaround cybersecurity and digital privacy.Management of customer expectation in supply chain management provides thenext focus. The benefits and costs associated with re- and near-shoring (bringingsupply chain components closer to markets) are then appraised. We also look at theavailable means of financing sustainable supply chains and near-shoring.We demonstrate the importance of balancing employee expectations regardingremote working with the benefits of face-to-face interaction and collaborativeworking in office and urban settings.The timing is right to face these questions head-on:•What are the most successful practices for constructing robusturban identities that attract investment and talent?•How can smart city technologies best be selected, financed, anddeployed to serve community interests?•Which supply chain management approaches ensure optimalsecurity and resiliency to stimulate urban economic growth?•What working practices are optimal?•Which forms of finance and incentives are desirable fordevelopment? 7 Learning Through Adversity:Strengthening Cities and EconomiesExecutive SummaryMany governments are rising to substantialglobal, regional, and local challenges andviewing them as stress tests of currentmodes of production, transportation, andhabitation.Public sector leaders and communitiesare learning from – and innovating to avoid –current deficiencies in systems for living.Sustainability, inclusion, resiliency, and areadiness to wrestle with opportunities andthreats presented by new technologiesarecommon features of successful city initiatives.Cultivation of strong municipal identity andpleasant, culturally vibrant environmentsenhances a city’s competitive advantageby attracting business, investment, youngtalent, and higher-education students. Workersare returnin