How cities create wealth in the new information economy:: Challenges for urban and city management in developing nations

This paper explores the relationship between cities (urban areas) and national economic growth, with special emphasis on the evolving role of urban areas in the new information economy and what this might mean for urban management in developing nations. Why should the relationship between cities and economic growth be of concern? Simply because, as we shall attempt to demonstrate, the manner in which cities are structured, governed and managed can have a profound impact on levels of economic welfare, and thus on poverty reduction. We argue that the role of cities and thus also of urban management will grow more vital as nations move to increasingly globalized and information-based economies. The new information economy makes new demands on urban planning and management. The task of urban managers and planners in developing nations will not be any easier. Much can be learned from the past mistakes of cities in the North, mistakes cities in developing nations need not repeat.