Wedneday
July 11, 2001
Hurrah!
Iran's economy is bigger than Kansas City!
KC economy is 76th largest in the world, report says
By ERIC PALMER
The Kansas City Star
July 10, 2001
In the realm of world economies, the Kansas City area lies somewhere
between Iran and Pakistan -- financially if not geographically.
With $64.8 billion in gross metropolitan product in 2000, the Kansas
City economy is the 76th largest economy in the world, just below Iran and
Puerto Rico, but greater than Pakistan or Peru, according to figures released
Tuesday by the U.S. Conference of Mayors. Gross product refers to the value
of goods and services produced in the metro area.
The Conference of Mayors compiled the analysis to buttress its call
on Congress and the administration to support metropolitan economic growth
by investing in transportation, distressed communities and education and
training in urban areas.
The economies of metropolitan areas account for 85 percent of the country's
gross domestic product and 84 percent of the jobs, according to the report,
making them the driving force of economic growth of the 1990s.
"Cities are economic powerhouses," said New Orleans Mayor
Marc Morial, president of the U.S. Conference of Mayors.
"We are not painting a picture of utopia, but we think the role
that cities played in the country's economic comeback has been forgotten,"
Morial said. "It's a common view to look at cities as being draining
on metro economies."
Although the report highlights the contributions of metropolitan areas
to the nation's economy, it showed that their total contribution to gross
national product increased only incrementally in the last decade -- to 84.7
percent from 84.3 percent. The figures, compiled by DRI-WEFA, an economic
forecasting company owned by Standard & Poor's, ranked the country's
319 largest metro areas and compared their economies to states and other
countries.
When compared with other metropolitan areas in the United States, the
Kansas City-area economy ranks 31st, just below Portland, Ore., and just
above Hartford, Conn. The Kansas City area's 80.5 percent increase ranked
140th in terms of the rate of economic growth in the last decade.
St. Louis placed ahead of Kansas City in size at 22nd, with $89.6 billion
in gross metropolitan product. St. Louis ranked 62nd among world economies,
below the Colombia and ahead of Malaysia. But it ranked 230rd among metropolitan
areas, with 65.6 percent growth in its economy in the last decade.
Among Kansas and Missouri metropolitan areas, Kansas City, Springfield,
Joplin, Columbia and Lawrence grew faster than the national average in the
last decade. St. Louis, Wichita, Topeka and St. Joseph grew more slowly.
Analysts noted the fastest growing segments of the national economy
-- high technology and business services -- are almost entirely concentrated
in urban areas.
"I am sure this growth is true and it's true because of the shift
to the information-based economy," said Dennis McKee, director of the
Johnson County Economic Research Institute. "The electronic revolution,
like the industrial revolution, is taking place in urban places."
It also should be no surprise that most of the economic growth of the
decade came from metropolitan areas, which have 80 percent of the population,
said Bruce Katz, director of the Brookings Institution Center on Urban and
Metropolitan Policy.
"What the report tries to spell is how large these economies are
compared to other foreign economies," Katz said. "That is a frame
of reference that Americans don't usually take."
Politically, the report also points out the mismatch between the nature
of economies and how the jurisdictions are governed, Katz said. Economies
are becoming more metropolitan and governance is becoming more parochial.
"Kansas City includes two states and lots of counties," Katz
said. "There is no entity for dealing with the challenges of the Kansas
City metropolitan area. Infrastructure funds go to two state capitols. Work
force funds to two state capitols. Sometimes there is coordination, and
sometimes there is not."
The federal government is trying to do better on issues like transportation,
Katz said, but there is more to be done.
Katz also noted that the metropolitan perspective can be misleading
in some respects, such as masking the fact that growth in metro areas is
not balanced.
"In Kansas City, most of the growth has been in Johnson County
while Kansas City, Kan., continues to face enormous problems," Katz
said. "The metropolitan perspective by itself doesn't totally tell
you everything."
Olathe Mayor Michael Copeland said Olathe is elated with its growth,
which is the fastest in the state and the area. But that fast growth has
strained its streets and bridges, and that kind of infrastructure costs
big bucks.
"I hope what the Conference of Mayors is trying to say is, `Don't
forget where your growth is coming from and remember we need to reinvest
to continue this tremendous growth we have had,' " Copeland said.
Metropolitan areas are getting support from federal and state funds,
said Kansas City Mayor Kay Barnes. But with a new administration, there
can be a concern "that there isn't some kind of backsliding. Priorities
can shift at the federal level whether intentional or unintentional,"
she said.
The report said there were six keys to keeping cities competitive --
safe streets, a skilled work force, the arts, strong infrastructure, affordable
housing and strong economies.
McKee said the lines between urban and suburban economies within metropolitan
areas are becoming increasingly blurred.
"You can make a geographic distinction but not an economic one
because the economies and the work force are so intertwined," McKee
said. "This has not been a suburban phenomenon but an metropolitan
phenomenon." .
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