Johannesburg Ranked Amongst Top 50 "Global Centres of Commerce"
MasterCard Worldwide Centres of Commerce Index™ explores strategic role of cities in driving global commerce Johannesburg, 27 November 2007 – MasterCard Worldwide today presented the findings of groundbreaking research, the MasterCard Worldwide Centres of Commerce Index™.
The Index is designed to provide insight and knowledge into leading cities and how they influence the global economy and perform critical functions that connect markets and commerce globally.
Johannesburg ranks as the top city in Africa at 47th place within the world's top 50 cities that are classified as the hubs of the new worldwide economy.
The Index, developed by a panel of leading experts in economics, urban development and social science from around the world, ranks the top 50 Centres of Commerce based on six measurement dimensions consisting of over 100 data points. The six measurement dimensions were; Legal & political framework, Economic Stability, Ease of Doing Business, Financial Flow, Business Centre, and Knowledge Creation & Information Flow.
It places London first, followed by New York, Tokyo, Chicago and Hong Kong in the top five. Completing the top 10 are Singapore, Frankfurt, Paris, Seoul and Los Angeles. The full report is available at www.mastercardworldwide.com. Johannesburg's ranking positions the city as a leader in Africa, offering a strong business climate that supports further development. Johannesburg's highest ranking was in the 'Financial Flow' dimension, where the city was ranked 26th out of the total 63 cities measured.
The city also scored high in the 'Ease of Doing Business' dimension (76.71) where it was ranked 33rd out of the 63 cities. The 'Economic Stability' and 'Knowledge Creation and Information Flow' dimensions represent opportunities for development, with the city scoring comparatively low Index ratings of 69.7 and 3.22 respectively.
"A prerequisite for success in today's global marketplace is an in-depth understanding of how cities are connected and how they influence the worldwide economy," said Eddie Grobler, Senior Vice President & General Manager, Africa, MasterCard Worldwide.
"The Worldwide Centres of Commerce program addresses this need by identifying and providing industry-leading insights into the characteristics and commonalities of cities that advance global commerce the most. Johannesburg, with a ranking in the top 50 Centres of Commerce, demonstrates its position as a continental hub. As the city with the highest ranking in Africa, Johannesburg's ranking tells an amazing growth story," he continued.
Speaking at the forum, Mike Schussler, Senior Economist at T-Sec said that there is no doubt that Johannesburg is a world-class city, but it must strive to improve its knowledge base, its network capabilities and its transport infrastructure, if it is to succeed in the broader game of global growth and city wealth.
"We do however know that between now and 2010, continued capital investment is planned by the City of Johannesburg for areas such as business process outsourcing, tourism and its public transport infrastructure," he said. "These investments, coupled with increased attention from the city on law enforcement and traffic congestion, will enable Johannesburg to improve its position as a world centre of commerce significantly."
The City of Johannesburg's Member of the Mayoral Committee responsible for Finance and Economic Development, Councillor Parks Tau explained at the forum that the priorities for Johannesburg were encapsulated by its Growth and Development Strategy (GDS), which aims to build a 'world class African city for all' by addressing the goals of shared economic growth, poverty reduction and environmental sustainability.
"One of the important tools we use to meet the needs of our communities is the five-year Integrated Development Plan that consolidates the planning process and provides a framework for the future development of the city," he continued.
"Over the past five years, Johannesburg has increased its capital investment significantly. There has been considerable growth in government-led public investment, to support growth in the City of Johannesburg, along with a concerted effort by the city, in partnership with the private sector, to develop the inner city."
The transformation of cities into global centres of commerce has been fuelled, in part, by rapid urbanisation. In terms of population size and economic activities, many cities today are far larger than a number of sovereign states and more important than ever before. The research report establishes that today, many of these metropolises are "global cities" that perform critical functions connecting markets and commerce worldwide. In essence, they are nodes of connectivity through which global commerce can take place.
"The old paradigm was the sovereign state; this is now the age of the city," said Professor William Lever, Emeritus Professor, Hon. Senior Research Fellow of Urban Studies, University of Glasgow and member of the knowledge panel for the MasterCard Worldwide Centres of Commerce Index.
"The trend of commerce becoming more knowledge-driven and less tangible has actually elevated the role of today's cities, positioning them as the hubs of complex circuits that fuel the globalised economy and provide connections through which true global commerce takes place.
"This research provides valuable insight into the cities that sit at the centre of global commerce as well as the factors that are fuelling commerce in each," he concluded.
For more information contact:
Tribeca Public Relations
mastercard@tribecapr.co.za
Cian
072 238 3596
cianm@tribecapr.co.za
Nicky
083 302 6022
nickyc@tribecapr.co.za
Full details of the Index composition, including indicators and sub-indicators used for calculating the index value, are detailed in the Index report titled, MasterCard Worldwide Centres of Commerce Index, 2007. A study on the significance of cities, is found in the Insights report, titled, MasterCard Worldwide Centres of Commerce™ Insights 2Q 2007: The Dynamics of Global Cities and Global Commerce. Both reports are available at www.mastercardworldwide.com.
