The Public Wealth of Cities

"Cities are the locomotives of economic progress. But not all cities are successful. This fascinating and important book has divided them into the "treadmill towns" that fail and the "turbo-cities" that succeed. The difference, argue the authors, is that successful cities focus intelligently on developing their long-term assets. They build economic, social, and human wealth."-Martin Wolf, Financial Times "In terms of the ideas presented, I loved the book. It touches on the organizational challenges of getting municipal finance right while speaking to what execution has to look like as well. It also moves us beyond a discussion limited to taxation and into a conversation about how municipal authorities can claw back some of the value they create, the same as we'd expect any firm in the private sector to do; and in so doing, it offers sustainable ways to fund those functions that won't make money, but that we'd like to see supported all the same."-Jeff Fong, Market Urbanism "Drawing on the successes and failures of cities around the world and applying exemplary analysis, Detter and Foelster uncover a treasure trove of hidden urban assets. Transparent, accountable, and professional governance of the economic, social, and human assets of our cities is achievable. A must-read for all mayors, city counsellors and those who elect them."-Willem Buiter, Chief Economist, Citibank "The authors offer pragmatic solutions, linking better outcomes to asset management practices and new definitions of social capital that promote evidence-based investments. The strategy: identify your economic, social, and human assets; professionally manage assets; and instead of show casing current interests or putting out fires, make long-term investments. With examples and toolkits, The Public Wealth of Cities helps local leaders see our real responsibility: not to produce and manage public wealth but to advocate for residents served by it. Of course, money matters, but not as much as our will to collaborate across sectors in order to govern public resources well and improve lives."-Ben McAdams, Salt Lake County (Utah) Mayor "Across the globe, people are flocking to cities. But some cities are thriving and others aren't. As the process of urbanization continues, it's crucial to understand why some cities succeed and others don't. In this important and practical new book, Detter and Foelster teach us how to turn around distressed cities."-Peter Orszag, Vice Chairman of Investment Banking, Lazard, and former Director, Congressional Budget Office "How do we deploy our public assets-our balance sheet-to meet critical social, human, and economic challenges? How do we finance these assets in an economically feasible, politically defensible way? How do we move beyond the essential-unassailable accountability-to our ultimate goal, expanding our metro economic engines? In Public Wealth of Cities Detter and Foelster take the lessons from their earlier work and apply them at the local level, where creativity and innovation are essential and where both the potential promise and pitfalls of government action are in stark relief."-Anthony Williams, former Mayor, Washington, D.C. "This is an important book. Detter and Foelster have introduced an innovative approach to solving some of the most egregious problems that cities face today. As the world's population grows, some cities will be forced to adapt while others will founder. Identifying a city's assets, improving management, and shifting resources from consumption to long-term investment make inherent sense and warrant close attention as a means to improve the quality of city life and standards of living."-Fergus J. McCormick, Chief Economist, DBRS, Inc.

Dag Detter is Managing Director of Detter & Co, specializing in unlocking public wealth. Previously he was the President of Stattum, the Swedish government holding company, and Director of State Enterprises at the Ministry of Industry. Stefan Foelster is Director of the Reform Institute in Sweden and Associate Professor of economics at the Royal Institute of Technology, in Stockholm. He has been the chief economist at the Confederation of Swedish Enterprise, and the author of many books on economic growth and social developments. Detter and Foelster are the authors of The Public Wealth of Nations, named by both The Economist and The Financial Times as among the best books of 2015.

Foreword Preface 1. The Investment Trap 2. Why Some Cities Fail 3. Turbo Cities 4. Taking Control of a City's Balance Sheet 5. The Urban Wealth Fund: A Conduit for Maximizing Value 6. Succeeding with Urban Wealth Funds: Some Case Studies 7. Shrinking the Social Debt of Cities 8. Boosting the Value of Human Assets 9. Reinventing City Democracy Notes Index