Beyond one-upmanship: Global rankings can offer insights for Indian cities to attract business- June 25, 2012
Yet another ranking, this time its an Economist Intelligence Unit (EIU) report supported by the Citigroup that ranks 120 cities worldwide for their “demonstrated ability to attract capital, business, talent and tourists,” says a First Post news article today.
Although in India, Delhi’s snub to Mumbai was the only bit that got the headlines, I chose to see the report in a slightly larger perspective. Unsurprisingly, cities in Europe and North Ameria fared really well in the rankings. The top 10 spots were taken by the usual suspects- New York, London, Singapore, Paris and Hong Kong (jointly fourth), Tokyo, Zurich, Washington, DC, Chicago and Boston.
However, Asian cities actually grabbed 15 out of 20 spots under the ‘economic strength’ category. Bangalore ranked 16 and Ahmedabad 19 in this category. On most other counts, however, Asian cities and certainly Indian cities performed abysmally. The categories were economic strength, financial maturity, institutional effectiveness, physical capital, human capital, environmental and natural hazards, social and cultural character and global appeal. Aspects like physical and human capital, financial maturity, global appeal and institutional effectiveness clearly need a whole lot of attention if Indian cities are to get on the global competitiveness bandwagon. On financial maturity for instance, Mumbai ranked 33, while Delhi and Bangalore ranked equivalent of 68; even India’s top cities were way down!
On some other categories, I wasn’t so sure what the ranking meant. For instance, that Ahmedabad would rank equivalent of 103 in social and cultural character really demand some thinking on what the parameters and objectives for evaluation are. Also, where are our cities, even those with some identity, slipping up?
Indian cities rank as below on the Hot Spots ranking:Delhi- 68, Mumbai-70, Bangalore- 79, Ahmedabad-92, Pune- 97, Hyderabad- 98, Chennai- 105, Kolkata- 106.For complete results, look here.
Its easy to turn a cynical eye at rankings, in a world where they seem to bring out one everyday. However, benchmarking methods like rankings hold up a mirror in front of economic regions (cities, regions, nations, whatever is the context) to make comparative analysis, identify weaknesses and target improvements in the future.
For instance, Delhi ranks 48 in global appeal as compared to Mumbai’s 67 and Bangalore’s 103. Now that is something to think about!