Historical background and conditions have already predestined the rush of Moscow in the direction of a global city. Though a number of failures and mistakes on the way has led to the current situation, when we are left too far behind in this battle of megacities. And here we can’t avoid mentioning a number of challenges that appeared during the last decades. Let us nominally divide them into city-planning mistakes and economic disproportions.

Against the worldwide trend of urban area decentralization and switch to mega-polarization, Moscow retains the historically centralized radial structure. City population density is treated by the world urbanists not as a shortcoming, but as a competitive advantage of the city (there are always more opportunities where millions of goods and services consumers live together). This has become a real problem in Moscow due to the city-planning mistakes and shortcomings. It resulted in hundreds of thousands square meters of offices and houses, rarity of comfortable public spaces, derelict parks and boulevards, 24-hour traffic jams inside the Third ring. On the contrary, other regions experience a lack of office space, convenience stores and cultural oases.

There is disproportion in the economy - trade and construction make up 40 per cent in the GRP structure of Moscow. The financial services share is dramatically lower than in the global financial centres that we are trying to compete with. The industrial share is very low, too. In 2011, 92 per cent of the city budget was composed by two taxes –profit tax and personal income tax. This means that the city’s social programs depend on the economic conditions. It was proved by the crisis of 2009, when the city income dropped by 22 per cent. More stable taxes, in particular, the real estate and land taxes, are of low importance.

Two millions out of 6,2 mln working people in Moscow are non-Moscovites, employed in McJobs that generate little value. This is hardly acceptable.

Competition with other megacities for investments, qualified professionals and tourists is extremely high. To become a successful competitor, Moscow needs a new model of economic growth, a new GRP and employment structure.

A whole range of economic and social indices display the capital`s potential.

It is hard to aspire to the status of a global city if entrepreneurs do not feel the freedom of enterprise and, moreover, see the dangers of losing their business, administrative pressure, etc.

Moscow is responsible for one-fifth of Russia`s GDP. About 80 per cent of the country`s financial flow passes through the city, which is the home to 9 out of 10 offices of largest national and transnational corporations. And the Moscow Stock Exchange is in the world`s top ten by several criteria.

A quarter of all Russian science & research organizations operate in the capital. According to various sources, from 30 to 60 per cent of Russia`s scientific power and a large number of the leading educational institutions are located here. Moscow is the fourth city in the world by the number of students and is among the leaders by the number of people with higher education.

We are convinced that Moscow offers considerable opportunities in exporting intellectual services. Around 7 or 8 Moscow universities have real chances to grow the needed potential. First steps in this direction are the Skolkovo Business School and the University of Natural Sciences founded jointly with the Massachusetts Institute of Technology and initially oriented at the export of quality education. Besides, for the first time in the city`s triannual budget plan for the 2012-2014 education and health care expenses are a clear priority and stand ahead of most other programmes. The emphasis is made on professional development and equipment modernization.

It is necessary to view the plans of Moscow`s development as an international financial hub also in terms of reaching the intellectual export capability. These plans can be called `synthetic` as they imply integrated realization of economic and human potential of the city.

In this regard I find it appropriate to address the main short- and long-term priorities for the government of Moscow.

Number one is definitely safety. A city with dangers threatening life and work and related to crime, traffic, ecology, healthcare, and other factors, cannot be attractive and convenient. These issues are necessary to deal with in the first place.

The quality of business climate and the opportunities for the development of private enterprise. It is hard to aspire to the status of a global city if entrepreneurs do not feel the freedom of enterprise and, moreover, see the dangers of losing their business, administrative pressure, etc. One of the most important tasks is to neutralize these dangers to the maximum extent, lowering administrative barriers and the state`s (in our case, the city`s) participation in the economy in principle, supporting the influx of production force and the intellectual human resource, granting them access to the needed infrastructure and creating opportunities for their development.

We realize that it is impossible to govern a megapolis with a population of 12 million without relying on a strong, smart and economically sound local authority.

Moscow`s formation as an innovative city. Although today Moscow is rated 97th in the world and 57th in Europe in the international rating of innovative cities, our objective is to reach the top 50 of the world rating and the top 20 of the European rating, in four years. There is both a foundation for it in the form of science schools and real achievements such as, for instance, in the area of IT solutions for the financial sector.

The traffic collapse solution. For obvious reasons it is impossible to develop the road network in a short period of time in such a way that it would absorb the cars, the number of which is growing daily. Therefore the perspectives of the solution to this problem lie in the area of the development of public transport.

The development of public space, city parks and green zones. While these occupy a third of the capital`s territory, many of them are neglected and are not centers of attraction for visitors. This situation is typical for Moscow, when there is potential but no feasible end product. Engaging the creative force of the younger generation for the redevelopment of these locations will make the city`s natural spots not just modern but popular, which is very important for giving them a second life, as it happened with Gorky Park. Roughly the same goes for the city`s tourist industry: the capital boasts a significant number of world-class cultural attractions, but there is no tourist service supply as well as no attractive image of Moscow as a center of tourism.

Solving the problem of the city`s industrial areas, which amount to no less than 7500 hectares. After getting rid of obsolete plants we will focus on their re-development as areas of mixed use; they can become parts of the infrastructure, new recreational spots and workplaces.

Interest in public initiatives. We realize that it is impossible to govern a megapolis with the population of 12 million without relying on a strong, smart and economically sound local authority. Therefore one of the most important priorities is a program of decentralization and development of local individual initiative, based on active and energetic people.

Based on all of the above I can affirm that even today Moscow is a global city with a large growth potential, abundant with obvious or not yet obvious advantages, having capitalized on which Moscow will have every chance for success in competition.

Andrey Sharonov

Project Group №5, Andrey Sharonov