ACS Organizational Transformation

Delhi, India

Delhi is the largest commercial centre in northern India; it has an estimated net State Domestic Product of 1578.17 billion (US$25 billion) in nominal terms and ~ 6300 billion (US$100 billion) in PPP terms. The per capita income of Delhi was Rs.210000, highest in India. GSDP in Delhi at the current prices is estimated at Rs 3.66 lakh crore. As per the Economic survey of Delhi, the tertiary sector contributes 70.95% of Delhi’s gross SDP followed by secondary and primary sectors, with 25.20% and 3.85% contributions respectively. Delhi’s workforce constitutes 32.82% of the population, and has increased by 52.52%. Key service industries are information technology, telecommunications, hotels, banking, media and tourism. Construction, power, health and community services, and real estate are also important to the city’s economy. Delhi has one of India’s largest and fastest growing retail industries. Manufacturing also grew considerably as consumer goods companies established manufacturing units and headquarters in the city. Delhi’s large consumer market and the availability of skilled labour has attracted foreign investment. The manufacturing sector employs 1,440,000 workers and the city had 129,000 industrial units.

London, United Kingdom

London generates approximately 20 per cent of the UK’s GDP (or $446 billion); while the economy of the London metropolitan area – the largest in Europe – generates approximately 30 per cent of the UK’s GDP (or an estimated $669 billion). London is one of the pre-eminent financial centres of the world and vies with New York City as the most important location for international finance. London’s largest industry is finance, and its financial exports make it a large contributor to the UK’s balance of payments. Around 325,000 people are employed in financial services in London. London has over 480 overseas banks, more than any other city in the world. Over 85% (3.2 million) of the employed population of greater London works in the services industries. The City of London is home to the Bank of England, London Stock Exchange, and Lloyd’s of London insurance market. Over half of the UK’s top 100 listed companies (the FTSE 100) and over 100 of Europe’s 500 largest companies have their headquarters in central London. Over 70 per cent of the FTSE 100 are within London’s metropolitan area, and 75 per cent of Fortune 500 companies have offices in London.

São Paulo, Brazil

São Paulo is considered the “financial capital of Brazil”, as it is the location for the headquarters of many major corporations and the country’s most renowned banks and financial institutions. São Paulo is Brazil’s highest GDP city and the 10th largest in the world, using Purchasing power parity. According to data of IBGE, its gross domestic product (GDP) is R$ 450 billion, approximately US$220 billion, 12.26% of Brazilian GDP and 36% of all production of goods and services of the State of São Paulo. According to PricewaterhouseCoopers average annual economic growth of the city is 4.2%. São Paulo also has a large “informal” economy. The city of São Paulo collects R$ 90 billion in taxes and the city budget is R$ 15 billion. The city has 1,500 bank branches and 70 shopping malls. The São Paulo Stock Exchange (BM&F Bovespa) is Brazil’s official stock and bond exchange. It is the largest stock exchange in Latin America, trading about R$ 6 billion (US$ 3.5 billion) every day. São Paulo’s economy is going through a deep transformation. Once a city with a h2 industrial character, São Paulo’s economy has followed the global trend of shifting to the tertiary sector of the economy, focusing on services. The city is unique among Brazilian cities for its large number of foreign corporations. 63% of all the international companies with business in Brazil have their head offices in São Paulo. São Paulo has the largest concentration of German businesses worldwide and is the largest Swedish industrial hub alongside Gothenburg. São Paulo ranked second after New York in FDi magazine’s bi-annual ranking of Cities of the Future in the Americas, and was named the Latin American City of the Future, overtaking Santiago de Chile, the first city in the previous ranking. Santiago now ranks second, followed by Rio de Janeiro. The city of São Paulo is home to research and development facilities and attracts companies due to the presence of several regionally renowned universities. Science, technology and innovation is leveraged by the allocation of funds from the state government, mainly carried out by means of the Foundation to Research Support in the State of São Paulo (Fundação de Amparo à Pesquisa do Estado de São Paulo – FAPESP), one of the main agencies promoting scientific and technological research.

Singapore

Singapore is the 14th largest exporter and the 15th largest importer in the world. The country has the highest trade-to-GDP ratio in the world at 407.9 percent, signifying the importance of trade to its economy. The country is currently the only Asian country to have AAA credit ratings from all three major credit rating agencies; Standard & Poor’s, Moody’s, and Fitch. Singapore attracts a large amount of foreign direct investment as a result of its location, corruption-free environment, skilled workforce, low tax rates and advanced infrastructure. There are more than 7,000 multinational corporations from the United States, Japan, and Europe in Singapore. There are also 1,500 companies from China and 1,500 from India. Foreign firms are found in almost all sectors of the economy. Singapore is also the second-largest foreign investor in India. Roughly 44 percent of the Singaporean workforce is made up of non-Singaporeans. Over ten free-trade agreements have been signed with other countries and regions. Singapore also possesses the world’s eleventh largest foreign reserves, and has one of the highest net international investment position per capita. The currency of Singapore is the Singapore dollar, issued by the Monetary Authority of Singapore. It is interchangeable with the Brunei dollar. In recent years, the country has been identified as an increasingly popular tax haven for the wealthy due to the low tax rate on personal income, a full tax exemption on income that is generated outside of Singapore and legislation that means that capital gains are also tax exempt.

Washington, DC

Washington has a growing, diversified economy with an increasing percentage of professional and business service jobs. The gross product of the Washington Metropolitan Area makes it the fourth-largest metropolitan economy in the United States. The federal government accounted for about 29% of the jobs in Washington, D.C. This is thought to immunize Washington to national economic downturns because the federal government continues operations even during recessions. Many organizations such as law firms, independent contractors (both defense and civilian), non-profit organizations, lobbying firms, trade unions, industry trade groups, and professional associations have their headquarters in or near D.C. to be close to the federal government. Tourism is Washington’s second largest industry. Approximately 18.9 million visitors contributes to the local economy every year. The District also hosts nearly 200 foreign embassies and international organizations such as the World Bank, the International Monetary Fund (IMF), the Organization of American States, the Inter-American Development Bank, and the Pan American Health Organization. The District has growing industries not directly related to government, especially in the areas of education, finance, public policy, and scientific research. Georgetown University, George Washington University, Washington Hospital Center, Children’s National Medical Center and Howard University are the top five non-government-related employers in the city. Four of the largest 500 companies in the country are also headquartered in the District.