new orleans as the model city for the 21st …new orleans, la / october 1, 2010 new orleans as the...
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New Orleans, LA / October 1, 2010
NEW ORLEANS AS THE MODEL CITY FOR THE 21st CENTURY:New Concepts of Urban Innovation
Metropolitan Policy Programat BROOKINGS
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The US needs a Blueprint for American Prosperity to strengthen metro economies, build a diverse middle class, and grow in sustainable ways.
A model city for the 21st century is a prosperous, resilient city that embraces the next economy
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The US needs a Blueprint for American Prosperity to strengthen metro economies, build a diverse middle class, and grow in sustainable ways.
Across the US, metro leaders are innovating buy they are too often “going it alone” without the necessary support from Federal government
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Greater New Orleans has made enormous progress but challenges remain
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New Orleans can be a model city if it builds on progress to date and transforms its future
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The US needs a Blueprint for American Prosperity to strengthen metro economies, build a diverse middle class, and grow in sustainable ways.
A model city for the 21st century is a prosperous, resilient city that embraces the next economy
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Prosperity is driven by four assets and good governance
Prosperity
Productive Growth
Inclusive Growth
Sustainable Growth
Innovation Human Capital
Infrastructure Quality Places
Good Governance6
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Total non-farm jobs in the New Orleans Metro700 thousand
Resilient
Transformative
Non-resilient
600
500
4001997 2009 2014
Sources: Bureau of Labor Statistics and Moody's Economy.com Database (U.S. Bureau of Labor Statistics: CES, QCEW)
Economic Resilience
The city and its larger regional economy must be resilient...
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• Strong and diverse regional economy
• Large shares of skilled and educated workers
• Strong social capital
• Community competence
• Wealth
...and shore up the characteristics that can predict resilience and adaptation to shock
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8.4 millionjobs lost in the recession
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Source: Bureau of Labor Statistics
Unemployment remains stubbornly high
0%
2.5%
5%
7.5%
10%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Une
mploymen
t Rate
August 2010
9.6% unemployment
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Domestic consumption will Not lead economic recoveryWe need a new growth model
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We need a new growth model
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“The rebuilt economy must be more export-‐oriented and less consump7on-‐oriented;
More environmentally-‐oriented and less fossil-‐energy-‐oriented;
More bio-‐ and so=ware-‐engineering-‐oriented and less financial engineering-‐oriented;
Lawrence SummersNa;onal Economic Council ChairmanJuly 17, 2009
More middle-‐class-‐oriented and less oriented to income growth that dispropor7onately favors a very small share of the popula7on.”
The Next Economy
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EXPORT-‐ORIENTED
LOW CARBON
INNOVATION-‐FUELED
OPPORTUNITY-‐RICH
The Next Economy
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Why do exports matter?
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Private Consumption Exports
70.1% 61.6%
12.7%
28.2%
U.S. OECD
We need to rebalance the U.S. economy
Source: Economist Intelligence Unit, 2010
Share of GDP
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1990 2015
United States
BIC Countries
18.2 %
25.8 %
2010
Share of World GDP
Future demand will come from outside of the U.S.
Source: International Monetary Fund, World Economic Outlook Database, April 2010
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Why does low-carbon matter?
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MarketsLow carbon economy =
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The energy we use
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The infrastructure we build
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The products we buy
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The buildings we live and work in
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Why does innovation matter?
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Innovation-Based Competitiveness (2009)
U.S. leadership on key innovation indicators is slipping
6th
Growth Rate (1999-2009)
36th
Source: ITIF, The Atlantic Century (2009)
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Source: National Science Foundation
The U.S. ranks low in science and engineering degrees
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Why does opportunity-rich matter?
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Business, Professional &
Technical Services
Transportation Equipment Chemicals Machinery Computer &
ElectronicsNational Average
71,08466,604
59,72453,720
52,53345,636
U.S. Wages Per Exporting Industry
Major exporting industries pay higher wages
Source: Third Quarter 2009, BLS, USITC, and BEA
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Financiers
Jobs in the low carbon economy
Scientists / Engineers
Entrepreneurs
Laborers
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The US needs a Blueprint for American Prosperity to strengthen metro economies, build a diverse middle class, and grow in sustainable ways.
Across the US, metro leaders are innovating buy they are too often “going it alone” without the necessary support from Federal government
Source: American Community Survey; photo courtesy Library of Congress Prints and Photographs Division
Poverty has climbed to highest level in decades
14.3
2009
12.4
2000
Percentage of Americans Below Poverty Line
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The US needs a Blueprint for American Prosperity to strengthen metro economies, build a diverse middle class, and grow in sustainable ways.
Across the US, metro leaders are innovating buy they are too often “going it alone” without the necessary support from Federal government
1 2 31 2 3
Greater New Orleans has made enormous progress but challenges remain
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• Strong and diverse regional economy
• Large shares of skilled and educated workers
• Strong social capital
• Community competence
• Wealth
The good news: of the five factors that can predict resilience, New Orleans has demonstrated three post-Katrina
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Overhaul of the public school system
Overhaul of healthcare delivery
Sweeping changes in criminal justice
New capacities and holistic approach to neighborhoods
New approach to land use, planning and coastal restoration
New Orleans has demonstrated “community competence” by pursuing systemic reforms
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Federal Dollars
• $8.8 billion obligated to date from FEMA Public Assistance
• $13. 4 billion in CDBG disaster funds
• $15 billion in Army Corps fund for hurricane projects in New Orleans are
• $5.2 billion in ARRA funds to Louisiana, as of October 2009
Foundation and Corporate Philanthropy Dollars
• $1 billion in foundation and corporate grants and PRIs to whole Gulf region (2005-2009)
On wealth, the city and metro area have benefited from vast federal, philanthropic, and private sector investments
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Source: Moody's Economy.com Database (U.S. Bureau of Labor Statistics: CES, QCEW)
Greater New Orleans is also beginning to reverse course and show signs of a more diverse, innovative economy
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Source: Regional Economic Information System, Bureau of Economic Analysis, U.S. Department of Commerce
Average wages in the metro area grew by nearly 14 percent, accelerating a trend that began in 2000
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Source: Federal Reserve Bank of Atlanta analysis of Kauffman Index of Entrepreneurial Activity
*Data for 7 of the 57 “Weak City” Metros were not available.
Entrepreneurship has spiked in the metro, surpassing the rate of individuals starting businesses nationally
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A greater share of students attend public schools that meet state standards of quality
Source: Louisiana Department of Education
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The bad news: the largest export sectors of the economy have been shrinking since 1980; only two in top 10 grew post-Katrina
Source: Moody's Economy.com Database (U.S. Bureau of Labor Statistics: CES, QCEW)
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Source: Strumsky Patent Application Dataset
Greater New Orleans is a low innovation metro
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n. s.: The difference between 2000 and 2008 is not statistically significant at the 95 percent confidence level for those with a Bachelor’s degree or higher in the New Orleans Metro.
Source: US Census Bureau, Decennial Census & American Community Survey 2008
The share of college-educated adults plateaued in New Orleans post-Katrina after growing since 1980
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n.s.: The difference between the United States and the New Orleans Metro in 2008 is not significant for White (alone, not Hispanic) and Hispanic/Latino (any race).
Source: U.S. Census Bureau Decennial Census and American Community Survey 2008
Income disparities remain stark between whites, blacks, and hispanics
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Source: U.S. Census Bureau, Decennial Census and American Community Survey 2008
While poverty remains high in the city, suburban parishes are now home to the majority of the area’s poor
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Source: John Barras, Julie Bernier, and Robert Morton, “Land area change in coastal Louisiana: A multidecadal perspective (from 1956 to 2006),” U.S. Geological Survey Scientific Investigations 019 (2008). 2009 data are part of a peer-reviewed, to-be-released report from USGS which will serve as an update to USGS SIM 3019.
Coastal wetlands continue to erode; the impact of the oil spill remains unknown
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1 2 31 2 3
New Orleans can be a model city if it builds on progress to date and transforms its future
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1. Sustain and build on post-Katrina reforms to date
2. Make key bets off existing strengths to transition to next economy
3. Strengthen characteristics of regional resilience to minimize impact of future shocks
Next Phase: Maintain goal of transformation and prosperity for the long haul
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Sustain and build on post-Katrina reforms to date
Increase the pool of qualified teachers by
growing skills of native residents
Identify sustained funding for the
community-based health care centers
Target unspent recovery dollars for
unmet housing needs, blight reduction, and increased community
capacity
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Make key bets off existing strengths to transition to next economy
Exports• Establish a metropolitan export initiative
• Modernize port and logistics
Low Carbon• Tap area’s strengths to expand into renewable energy
• Make the city a model of sustainability
Innovation• Adopt regional innovation clusters
• Tap network of entrepreneurs
Opportunity Rich• Link small minority- and women-owned businesses to
new economic opportunities
• Build skills to match emerging and existing sectors
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Strengthen characteristics of regional resilience to minimize impact of future shocks
• Continue to nurture open, collaborative society
• Expand local “wealth” to match outside resources
• Diversify economy
• Increase share of skilled workers
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New Orleans, LA / October 1, 2010
NEW ORLEANS AS THE MODEL CITY FOR THE 21st CENTURY
Metropolitan Policy Programat BROOKINGS
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