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Nearly half of the Group of 20 member states have yet to chart or complete a strategy for how their major cities should leverage emerging technologies, a recent report from Boston Consulting Group (BCG) indicated.
Of the 11 participants in the high-profile economic forum that do have smart-cities strategies, all have enacted mobility and energy policies, but far fewer—only four—laid out smart-building policies, the consulting firm shared in its Dec. 14 report.
Despite their differences in scope, such plans can help ease issues that growing cities face, such as “overcrowding, gridlock, safety, and water shortages,” BCG said.
“By integrating artificial intelligence (AI), sensors, and other cutting-edge technologies into their core services, these and other smart cities are redefining how residents, businesses, and governments will live, interact, and operate in the coming years,” the report shared.
Nations including Brazil, Germany, South Africa, Turkey, China, Australia, and India led the way, with comprehensive smart-cities plans adopted as early as 2015, according to BCG data. Saudi Arabia has plans to adopt a national strategy, but hasn’t yet published the details, according to the report.
Other nations lag behind: The US and Russia are two of the largest countries that completely lack a smart-city strategy. That doesn’t mean it’s too late to get started, the report said.
“While many national governments have yet to fully embrace smart cities, they have the tools and know-how to help cities of all sizes become smart,” BCG advised. “They can play a major role when it comes to creating an enabling regulatory environment, effective governance structures, and balanced financing mechanisms.”
The most effective smart-city strategies leverage what national governments do best, including emphasizing “regulatory policies, standards, funding, R&D, and digital infrastructure,” according to the report. Pairing the priorities with cash to enforce them is also key.
“National governments should have a dedicated budget for their smart-city strategy. It should provide the funding that’s needed on a national level as well as the financial support that’s necessary on a city and regional level to implement the smart-city agenda,” BCG concluded.