Addressing Challenges of Smart Cities to Manage Assets and Resources in Emerging Markets

6th International Scientific Conference – EMAN 2022 – Economics and Management: How to Cope With Disrupted Times, Ljubljana, Slovenia, March 24, 2022, SELECTED PAPERS, published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; ISBN 978-86-80194-58-5, ISSN 2683-4510

 

Abstract:

Smart cities received increasing attention in recent years and more and more cities focus on becoming smart. The focus of this research is on cit­ies from emerging markets beginning with the challenges these cities are fac­ing now and in the future. The challenges defined are demographic and so­cial change, urbanization, environment, digitalization, mobility, environ­ment, and energy infrastructure. After elaborating on these challenges, their developments, and the possible consequences, potential solutions through smart technologies for cities in emerging markets to cope with these chal­lenges are investigated. Furthermore, this research explores necessary steps and important factors for emerging market cities to become smart as well as the implementation and integration of smart solutions that work efficiently and do not cause wrong developments. Additionally, interviews with five ex­perts working or researching the subject under study were organized. The re­sults show that there are several challenges for cities in emerging markets led by urbanization, population growth, and issues related to infrastructure. The experts agreed that most challenges can be addressed by smart technolo­gies, but it was pointed out that the technologies will only work if there is also social and cultural change on the part of people and structural faults are ad­dressed. All in all, smart cities can be an appropriate solution to address and solve challenges in emerging markets if implemented in the right way.

Keywords:

Smart city; Smart technology; Emerging markets; Urbanization; Digitalization; Urban development

REFERENCES

Abou Rayan, M. M., & Djebedjian, B. (2016). Urban Water Management Challenges in Developing Countries: The Middle East and North Africa (MENA). In T. Younos & T. E. Parece (Eds.), Sustainable Water Management in Urban Environments (pp. 295–326). Springer International Publishing. https://doi.org/10.1007/978-3-319-29337-0_10

Al-Masri, A. N., Ijeh, A., & Nasir, M. (2019). Smart City Framework Development: Challeng­es and Solutions. In A. Al-Masri & K. Curran (Eds.), Smart Technologies and Innova­tion for a Sustainable Future (pp. 325–331). Springer International Publishing. https://doi. org/10.1007/978-3-030-01659-3_38

Anthopoulos, L. G. (2017). Understanding Smart Cities: A Tool for Smart Government or an Indus­trial Trick? Springer International Publishing. https://doi.org/10.1007/978-3-319-57015-0

Barreto, L., Amaral, A., & Baltazar, S. (2020). Mobility in the Era of Digitalization: Thinking Mo­bility as a Service (MaaS). In R. Jardim-Goncalves, V. Sgurev, V. Jotsov, & J. Kacprzyk (Eds.), Intelligent Systems: Theory, Research and Innovation in Applications (pp. 275–293). Springer International Publishing. https://doi.org/10.1007/978-3-030-38704-4_12

Berrone, P., & Ricart, J. E. (2020). IESE Cities in Motion Index. IESE Business School Uni­versity of Navarra. https://blog.iese.edu/cities-challenges-and-management/2020/10/27/ iese-cities-in-motion-index-2020/

Bibri, S. E. (2019). Big Data Science and Analytics for Smart Sustainable Urbanism: Unprecedent­ed Paradigmatic Shifts and Practical Advancements. Springer International Publishing. https:// doi.org/10.1007/978-3-030-17312-8

Biswas, R. (2018). Emerging Markets Megacities. In R. Biswas (Ed.), Emerging Markets Megatrends (pp. 47–64). Springer International Publishing. https://doi.org/10.1007/978-3-319-78123-5_3

Caragliu, A., Bo, C. D., & Nijkamp, P. (2011). Smart Cities in Europe. Journal of Urban Technology, 18(2), 65–82. https://doi.org/10.1080/10630732.2011.601117

CGNet Swara. (2021). About CGNet Swara. CGNet Swara. http://cgnetswara.org/about.html

Chatterjee, S., & Kar, A. K. (2018). Readiness of Smart City: Emerging Economy Perspective. In Y. K. Dwivedi, N. P. Rana, E. L. Slade, M. A. Shareef, M. Clement, A. C. Simintiras, & B. Lal (Eds.), Emerging Markets from a Multidisciplinary Perspective: Challenges, Oppor­tunities and Research Agenda (pp. 221–232). Springer International Publishing. https://doi. org/10.1007/978-3-319-75013-2_17

Dameri, R. P. (2013). Searching for smart city definition: A comprehensive proposal. International Journal of Computers & Technology, 11(5), 2544–2551.

Dameri, R. P. (2017). Using ICT in Smart City. In R. P. Dameri (Ed.), Smart City Implementation: Creating Economic and Public Value in Innovative Urban Systems (pp. 45–65). Springer Inter­national Publishing. https://doi.org/10.1007/978-3-319-45766-6_3

Dano, U. L., Balogun, A.-L., Abubakar, I. R., & Aina, Y. A. (2020). Transformative urban gov­ernance: Confronting urbanization challenges with geospatial technologies in Lagos, Nigeria. GeoJournal, 85(4), 1039–1056. https://doi.org/10.1007/s10708-019-10009-1

De Dutta, S., & Prasad, R. (2020). Digitalization of Global Cities and the Smart Grid. Wireless Per­sonal Communications, 113(3), 1385–1395. https://doi.org/10.1007/s11277-020-07478-w

Dustdar, S., Nastić, S., & Šćekić, O. (2017). Smart Cities: The Internet of Things, People, and Sys­tems. Springer International Publishing. https://doi.org/10.1007/978-3-319-60030-7

Fernandez-Anez, V., Fernández-Güell, J. M., & Giffinger, R. (2018). Smart City implementation and discourses: An integrated conceptual model. The case of Vienna. Cities, 78, 4–16. https://doi. org/10.1016/j.cities.2017.12.004

Ghosal, A., & Halder, S. (2018). Building Intelligent Systems for Smart Cities: Issues, Challenges, and Approaches. In Z. Mahmood (Ed.), Smart Cities: Development and Governance Frameworks (pp. 107–125). Springer International Publishing. https://doi.org/10.1007/978-3-319-76669-0_5

Giffinger, R., Fertner, C., Kramar, H., Kalasek, R., Pichler-Milanovic, N., & Meijers, E. (2007). Smart cities: Ranking of European medium-sized cities. Centre of Regional Science (SRF), Vienna University of Technology. http://www.smartcities.eu/download/smart_cities_final_report.pdf

Gläser, J., & Laudel, G. (2010). Experteninterviews und qualitative Inhaltsanalyse: Als Instrumente rekonstruierender Untersuchungen (3rd ed.). VS Verlag für Sozialwissenschaften. https://www. springer.com/de/book/9783531172385

Han, H., & Hawken, S. (2018). Introduction: Innovation and identity in next-generation smart cities. City, Culture and Society, 12, 1–4. https://doi.org/10.1016/j.ccs.2017.12.003

IMD, IMD World Competitiveness Center, SCO Smart City Observatory, & Singapore Univer­sity of Technology and Design. (2020). Smart City Index 2020. IMD. https://www.imd.org/ smart-city-observatory/smart-city-index/

Jaekel, M. (2015). Smart City wird Realität: Wegweiser für neue Urbanitäten in der Digitalmoderne. Springer Vieweg. https://doi.org/10.1007/978-3-658-04455-8

Joia, L. A., & Kuhl, A. (2019). Smart City for Development: A Conceptual Model for Developing Countries. In P. Nielsen & H. C. Kimaro (Eds.), Information and Communication Technolo­gies for Development. Strengthening Southern-Driven Cooperation as a Catalyst for ICT4D (pp. 203–214). Springer International Publishing. https://doi.org/10.1007/978-3-030-19115-3_17

Kaiser, R. (2014). Konzeptionelle und methodologische Grundlagen qualitativer Experteninterviews. In R. Kaiser (Ed.), Qualitative Experteninterviews: Konzeptionelle Grundlagen und praktische Durchführung (pp. 21–49). Springer Fachmedien. https://doi.org/10.1007/978-3-658-02479-6_2

Kalawapudi, K., Singh, T., Dey, J., Vijay, R., & Kumar, R. (2020). Noise pollution in Mumbai Met­ropolitan Region (MMR): An emerging environmental threat. Environmental Monitoring and Assessment, 192(2), 152. https://doi.org/10.1007/s10661-020-8121-9

Kookana, R. S., Drechsel, P., Jamwal, P., & Vanderzalm, J. (2020). Urbanization and emerging econ­omies: Issues and potential solutions for water and food security. Science of The Total Environ­ment, 732, 139057. https://doi.org/10.1016/j.scitotenv.2020.139057

Kummitha, R. K. R., & Crutzen, N. (2019). Smart cities and the citizen-driven internet of things: A qualitative inquiry into an emerging smart city. Technological Forecasting and Social Change, 140, 44–53. https://doi.org/10.1016/j.techfore.2018.12.001

Lambrechts, W., & Sinha, S. (2021). Preparing Emerging Markets to Participate in a New Era of Communication. A Technical and Economic Perspective. In W. Lambrechts & S. Sinha (Eds.), Millimeter-wave Integrated Technologies in the Era of the Fourth Industrial Revolution (pp. 165–214). Springer International Publishing. https://doi.org/10.1007/978-3-030-50472-4_5

Mayring, P. (2015). Qualitative Inhaltsanalyse. Grundlagen und Techniken (12th ed.). Beltz Verlag.

McNabb, D. E. (2019). The Urbanization Barrier. In D. E. McNabb (Ed.), Global Path­ways to Water Sustainability (pp. 83–98). Springer International Publishing. https://doi. org/10.1007/978-3-030-04085-7_6

Meuser, M., & Nagel, U. (2002). ExpertInneninterviews—Vielfach erprobt, wenig bedacht. In A. Bogn­er, B. Littig, & W. Menz (Eds.), Das Experteninterview: Theorie, Methode, Anwendung (2nd ed., pp. 71–93). VS Verlag für Sozialwissenschaften. https://doi.org/10.1007/978-3-322-93270-9_3

Mohanty, R., & Kumar, B. P. (2021). 7—Urbanization and smart cities. In J. R. Vacca (Ed.), Solving Urban Infrastructure Problems Using Smart City Technologies (pp. 143–158). Elsevier. https:// doi.org/10.1016/B978-0-12-816816-5.00007-3

Mordor Intelligence. (2020). Smart Cities Market – Growth, Trends, Covid-19 Impact, and Forecasts (2021—2026). Mordor Intelligence. https://www.mordorintelligence.com/industry-reports/ smart-cities-market

Muggah, R., Hill, K., & Aggarwala, R. T. (2018). Smart city experts should be looking to emerg­ing markets. Here’s why. World Economic Forum. https://www.weforum.org/agenda/2018/10/ how-the-developing-world-can-kickstart-the-smart-cities-revolution/

Müller-Seitz, G., Seiter, M., & Wenz, P. (2016). Was ist eine Smart City?: Betriebswirtschaftliche Zugänge aus Wissenschaft und Praxis. Gabler Verlag. https://doi.org/10.1007/978-3-658-12642-1

Nautiyal, L., Malik, P., & Agarwal, A. (2018). Cybersecurity System: An Essential Pillar of Smart Cities. In Z. Mahmood (Ed.), Smart Cities: Development and Governance Frameworks (pp. 25–50). Springer International Publishing. https://doi.org/10.1007/978-3-319-76669-0_2

Noussan, M., Hafner, M., & Tagliapietra, S. (2020). Digitalization Trends. In M. Noussan, M. Haf­ner, & S. Tagliapietra (Eds.), The Future of Transport Between Digitalization and Decarboni­zation: Trends, Strategies, and Effects on Energy Consumption (pp. 51–70). Springer Interna­tional Publishing. https://doi.org/10.1007/978-3-030-37966-7_3

OECD. (2019). Enhancing The Contribution of Digitalisation to the Smart Cities of the Future. https:// www.oecd.org/regional/regionaldevelopment/Smart-Cities-FINAL.pdf

Popkova, E. G., Saveleva, N. K., & Sozinova, A. A. (2021). A New Quality of Economic Growth in “Smart” Economy: Advantages for Developing Countries. In E. G. Popkova & B. S. Sergi (Eds.), “Smart Technologies” for Society, State and Economy (pp. 426–433). Springer Interna­tional Publishing. https://doi.org/10.1007/978-3-030-59126-7_48

Prasad, D., & Alizadeh, T. (2020). What Makes Indian Cities Smart? A Policy Analysis of Smart Cit­ies Mission. Telematics and Informatics, 101466. https://doi.org/10.1016/j.tele.2020.101466

Rao, S. K., & Prasad, R. (2018). Impact of 5G Technologies on Smart City Implementation. Wireless Personal Communications, 100(1), 161–176. https://doi.org/10.1007/s11277-018-5618-4

Reiche, K. (2020). Smart Cities and Smart Regions—The Future of Public Services—Solidarity and Economic Strength Through Smart Regions and Smart Cities. In D. Feldner (Ed.), Redesigning Organizations: Concepts for the Connected Society (pp. 163–175). Springer International Pub­lishing. https://doi.org/10.1007/978-3-030-27957-8_12

Rosati, U., & Conti, S. (2016). What is a Smart City Project? An Urban Model or A Corporate Busi­ness Plan? Procedia – Social and Behavioral Sciences, 223, 968–973. https://doi.org/10.1016/j. sbspro.2016.05.332

Saba, D., Sahli, Y., Berbaoui, B., & Maouedj, R. (2020). Towards Smart Cities: Challenges, Compo­nents, and Architectures. In A. E. Hassanien, R. Bhatnagar, N. E. M. Khalifa, & M. H. N. Taha (Eds.), Toward Social Internet of Things (IoT): Enabling Technologies, Architectures, and Ap­plications: Emerging Technologies for Connected and Smart Social Objects (pp. 249–286). Springer International Publishing. https://doi.org/10.1007/978-3-030-24513-9_15

Saroha, J. (2016). Sustainable Urbanization in India: Experiences and Challenges. In A. K. Dutt, A. G. Noble, F. J. Costa, R. R. Thakur, & S. K. Thakur (Eds.), Spatial Diversity and Dynamics in Resources and Urban Development: Volume II: Urban Development (pp. 81–98).

Siepermann, M. (2020). Definition: Smart City. https://wirtschaftslexikon.gabler.de/definition/smart-city-54505; Springer Fachmedien Wiesbaden GmbH. https://wirtschaftslexikon.gabler.de/ definition/smart-city-54505

Singh, R., Wang, X., Mendoza, J. C., & Ackom, E. K. (2015). Electricity (in)accessibility to the ur­ban poor in developing countries. WIREs Energy Environ, 4, 339–353. https://doi.org/10.1002/ wene.148

Smart City Hub. (2017b). Smart cities: Facts and figures, drivers and solutions. Smart City Hub.

Statista. (2020). Mobile subscriptions worldwide 1993-2019. Statista. https://www.statista.com/ statistics/262950/global-mobile-subscriptions-since-1993/

UN Habitat. (2007). State of the world’s cities 2006/7. UN-HABITAT. www.unhabitat.org.

Vinod Kumar, T. M. (2019). Smart Metropolitan Regional Development: Economic and Spatial Design Strategies. In T. M. Vinod Kumar (Ed.), Smart Metropolitan Regional Development: Economic and Spatial Design Strategies (pp. 3–97). Springer. https://doi.org/10.1007/978-981-10-8588-8_1

Visvizi, A., & Lytras, M. D. (2018). Rescaling and refocusing smart cities research: From megaci­ties to smart villages. Journal of Science and Technology Policy Management, 9(2), 134–145. https://doi.org/10.1108/JSTPM-02-2018-0020

Vonwiller, V. (2018). M-PESA: Wie Kenia den mobilen Zahlungsverkehr revolutionierte. N26 Mag­azine. https://mag-de.n26.com/m-pesa-wie-kenia-den-mobilen-zahlungsverkehr-revolutioni­erte-323df65c90ac

Webb, R. (2014). Jana. Mobile for Development. https://www.gsma.com/mobilefordevelopment/ resources/jana/

World Bank. (2018). Access to Energy is at the Heart of Development. World Bank. https://www. worldbank.org/en/news/feature/2018/04/18/access-energy-sustainable-development-goal-7

Yatta, F. P. (2018). Urbanization in Africa: Trends, Regional Specificities, and Challenges. In C. Ro­zenblat, D. Pumain, & E. Velasquez (Eds.), International and Transnational Perspectives on Urban Systems (pp. 317–339). Springer. https://doi.org/10.1007/978-981-10-7799-9_14

Yoshino, F. (2021). Transformation of Asian Business: From Industrialization to Digitaliza­tion. In H. Shioji, D. R. Adhikari, F. Yoshino, & T. Hayashi (Eds.), Management for Sus­tainable and Inclusive Development in a Transforming Asia (pp. 1–23). Springer. https://doi. org/10.1007/978-981-15-8195-3_1