São Paulo – Its changing economy and future opportunities

Miguel BucalemProfessor, University of São Paulo – USP

USP Cidades(Centre for Cities, São Paulo University)

October 2013

Paulista Macrometropolis

Aglomeração Urbana

Piracicaba

RM de São Paulo

RM de Campinas

Região Metropolitana

da Baixada Santista

RM do Vale do Paraíba e Litoral Norte

Source: IBGE 2010

Region Population % Pop. % GDP

City of São Paulo 11.244.369 27,3 35,6

SP Metropolitan Region 19.700.000 47,7 45,8

Paulista Macrometropolis 27.334.712 66,2 63,8

State of São Paulo 41.262.199 100,0 100,0

City of São Paulo 11.244.369 5,9 10,1

Brazil 190.732.694 100,0 100,0

• Area: 1,509 km²

• Urbanized Area: 1,000 km²

• Population: 11.2 million (2010)

• Density: 73 inhab./ha

• Total GDP: US$ 260 bi(Source: IBGE 2010, conversion rate dec/2010)

• GDP per capita: US$ 23,000(Source: IBGE 2010, conversion rate dec/2010)

• 31 administrative districts

• 96 subdistricts• It comprises:

• 17,260 km of public ways• 74.3 km of subway • 125.0 km of railways• 111.5 km of bus corridors• 1,349 urban bus lines (fleet: 15 K

vehicles)

São Paulo City

• 11th City in gross production (Brookings Institution 2012)

• 1st largest stock market in Latin America

• Leading Universities in Latin America

• The greatest medical center in Latin America

• 2,000 private companies with focus on R&D

• 70 different cultures living harmoniously

• Culture and Leisure Center(120 theatres, 280 cinemas, 88 museums)

• One event every 6 minutes

• Logistics Pole(port / airport / roads / railways)

Potentials

1996 2006

Employment concentration in the Industry Sector

Jobs per area

1996 2006

Jobs per area

Employment concentration in the Service Sector

2010

Jobs per area

Employment concentration in the Service Sector

Source: Atlas Geoeconômico da Cidade

Cities High Industry Industry SIC-F Population

São Paulo 10,7 12,2 23,5 11.253.503

Rio de Janeiro 2,1 3,0 9,7 6.320.446

Belo Horizonte 0,8 1,0 3,4 2.375.151

Porto Alegre 1,0 1,1 2,8 1.409.351

Recife 0,3 0,6 1,5 1.537.704

Salvador 0,1 0,2 1,7 2.675.656

Curitiba 3,0 1,9 3,1 1.751.907

BRAZIL 100,0 100,0 100,0 190.732.694

Sector Jobs (1997) Jobs (2005) % (1997) % (2005)

Services 1.250.324,0 1.578.478,0 51,0 55,9

Commerce 470.691,0 641.834,0 19,2 22,7

Industry 549.050,0 459.761,0 22,4 16,3

Civil Construction 179.471,0 143.174,0 7,3 5,1

Total 2.449.536 2.823.247,0 100,0 100,0

Sector Jobs (1997) Jobs (2005) % variation1997-2005

High Industry 187.637,0 161.627,0 -14 %Industry 361.413,0 298.134,0 -18 %ICT Services 77.558,0 91.077,0 17 %P &D and Consult. 77.484,0 147.805,0 91 %Financial Services 142.392,0 146.125,0 3 %Educ. and Health 136.431,0 184.864,0 35 %Media Services 13.071 14.141,0 8 %TOTAL 2.449.536,0 2.832.247,0 16 %

Urban Operation1995| new land use regulation

Urban Operation2001| new land use regulation

Business Districts in São Paulo

Downtown370,000 jobs

Paulista avenue263,000 jobs

Faria Lima avenue239,000 jobs (2007)315,000 jobs (2020)

Berrini / Chucri avenues182,000 jobs (2007)375,000 jobs (2020)

Downtown

Paulista ave

Faria Lima ave

Berrini ave

Chucri Zaidan ave

Finances and services to firms

Tourism

Leadership sectors (holdings,

government, etc.)

Entertainment, culture and creative

industry

Science, technology, innovation, research

and development

Events and Conventions

Business corridors

International Investment Attraction

Software and Games industry

Management SchoolsConsulting firms

Economic activities within the city vision

Challenges and Opportunities

Daily pendular movements

SP2040 A compact, polycentric and equivalent city

• Lively Rivers• Urban Parks• Communities

• 30-minute City• Opportunity Centers• Open City

Challenges and Opportunities

• Lively Rivers• Urban Parks• Communities

• 30-minute City• Opportunity Centers• Open City

Daily pendular movements

SP2040 A compact, polycentric and equivalent city

It has to happen!

Spatial Strategy• fast and huge expansion of the metro and

medium capacity transportation corridors;

• redevelopment of central area;

• fostering new centers.

Consolidate insertion in the new

economy• creative industries;

• science and technology;

• health and life sciences;

• financial;

• high level consultancy to companies

• Great Britain and Brazil have around USD 8 billion worth of commerce per year based mainly on commodities

• There a number of London company headquarters in São Paulo and vice versa

• São Paulo is already “like London”: Internationalised and Cosmopolitan, Corporate HQs, Cultural, Decision Making, Universities, Media.

There is need and potential for much more

London and São Paulo ?

London and São Paulo ?

There is need and potential for much more

London should be in the center of a network of world cities in which São Paulo will be an active member. Lessons from London are important to all world cities. São Paulo is a customer for London know how.

London can help São Paulo to make the next step into the new economy

• fostering the eco-sytem to attract talented people and knowledge activities• setting up PPPs for city renewal and new infrastructure• networks for corporate hosting• knowledge exchange in hosting international events

São Paulo can also help London sharing its experience on city wide projects which resulted from dealing with large scale imbalances, such as housing projects.

mbucalem@uspcidades.net

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