Investing in regional equality
Lessons from four cities
Introduction
Increasing equality in a city or region benefits everyone who lives there. Many of the challenges we face – in health or education, the economy or the climate – can be tackled by focusing on inequality. These issues are complex, and require innovative and sustainable long-term solutions.
To learn what works, we can look to places around the world where local governments have been investing in equality for their region and people. This report contains four case studies that illustrate a variety of approaches – and the importance of responding to local strengths and challenges. While some themes are similar, each place is unique.
Public finance professionals play a vital role in working to address inequality, in collaboration within and between organisations. Investing in equality draws on first-hand testimony and evidence to offer guidance on shaping public policy and stewarding funds to make lives better.
Background to the report
Our four case studies were selected for their differing and successful approaches to reducing inequality. The city-regions featured are Fukuoka in Japan, Leipzig in Germany, Cleveland in the US and Nantes in France. Case study research included interviews with policy experts, public sector officials and academics; it was conducted in collaboration between CIPFA and the City Region Economic and Development Institute (City-REDI) at the University of Birmingham.
Interventions focused on equality should aim to improve standards of living by helping each place reach its potential. They can be either place-based or people-based, but should take into account the long-term commitment required to see lasting improvements.
Measurement and evaluation are essential in assessing whether what you're doing is working. Identifying appropriate metrics should be part of the planning stage, with regular monitoring built into the process to track progress against the programme's objectives. Gathering this data can reveal further needs or gaps to be addressed, ensuring public funds continue to be used effectively.
The supplementary report Metrics and a framework for designing effective policies contains guidance on selecting metrics for monitoring and evaluation purposes.
The four cities
Each of the cities we spoke to for our case studies is taking a different approach to investing in equality:
Fukuoka is a port city in south-west Japan that has been promoting itself as a great place to live for younger people and encouraging entrepreneur immigration.
The mayor's strategic vision includes positioning Fukuoka as a location for start-up businesses, with a lower rate of corporation tax than the rest of Japan.
In contrast to national trends, Fukuoka is seeing population growth. The city has emphasised its good quality of life to attract families, and leverages its proximity to mainland Asia to welcome tourists and international students.
Leipzig in south-east Germany is building on its strategic economic strengths, looking to its past to guide future development.
The city council has focused on promoting clusters of businesses, targeting the automotive, energy, logistics, healthcare and media sectors, and drawing on national and state funding.
Aligning the city's policies with wider efforts to reduce inequalities between western and eastern Germany post-unification has been crucial to Leipzig's success.
Cleveland, Ohio, has a long history of community philanthropy, and organisations across the city are working together to create a more inclusive and resilient economy for all residents.
Anchor institutions such as the Cleveland Foundation are playing a key role in leading new initiatives and co-ordinating a collaborative approach to procurement, hiring and development across the city.
The city uses a wide range of different indicators to measure their progress, including health, wellbeing and community belonging.
Nantes, near France's western coast, has been investing in cultural initiatives to promote the city as a destination.
The area has also been cultivated as a hub for technological development and innovation.
Nantes city council and the combined metropolitan authority engage with stakeholders and citizens when designing policies. As a result, they have adopted models of procurement that incorporate social and environmental factors.
Conclusions
We identified nine different elements behind the success of our case study cities:
1. Shared political will and partnerships
Local organisations uniting around a common aim across different sectors.
2. Clear strategy and vision
Setting out what it will be like to live in the area and how this change will be achieved.
3. Investing for the long term
Committing to projects that may take 15 years or more to come to fruition.
4. Local knowledge
Understanding the city's history, its strengths and weaknesses – and identifying opportunities
5. Monitoring and evaluation
Designing ways to check and measure progress, and then respond to changing circumstances.
6. Adapting national frameworks to address local needs
Building a local narrative that takes into account national trends and central government priorities.
7. Diversification
Looking beyond economic growth to shape the city's culture and living space.
8. Key players
From an influential philanthropic organisation to a charismatic mayor – identifying stakeholders who can drive growth.
9. Adequate and responsive funding
Accessing the financing that makes these policies become reality.
There are many different ways of improving and investing in equality. As cities and regions around the world start to rebuild after the pandemic, this report illustrates how these policies can be designed for long-term benefits across society.
The lessons from these four cities, which include the remaining challenges and areas for improvement, provide insights and guidance for those next steps.
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