Urbanization, demographics and the emerging middle class; rising inequality; sustainability; technological change; industrial clusters and global value chains; and governance are the six global “megatrends” to affect competitiveness of cities, said the Report on Competitiveness of Cities released by the World Economic Forum on August 13.

Firstly, rapid urbanization will surely change the way cities operate. The emerging-market middle class will double its share of global consumption from one-third to two-thirds by 2050 and be concentrated in existing and new cities. And ageing will be an important trend in global demographics, which is very much related to cities and urbanization.

Secondly, within countries, inequality is on the rise. Cities are affected by rising inequality and, in some instances, may help cause it.

Thirdly, sustainability will ensure long-term economic development compatible with available natural resources and the preservation of the natural environment. Cities are especially intensive users of energy, food and water and are responsible for over half of global greenhouse gas emissions.

Fourthly, technological change is “disruptive”. Some cities, typically over-reliant on one industry, and with ossified policies and institutions, were hollowed out and became rust belts.

Fifthly, cities are already the hubs and nodal points in global value chains (GVC), with clusters of manufacturing and service activities. The challenge is to ensure a smooth flow along the value chain.

Sixthly, in stark contrast to dynamic economic, social and technological forces, the world of politics and governance seems much more static. This creates a window of opportunity for provincial and city governments to reactivate themselves.

It is up to cities to take advantage of these megatrends, as well as to mitigate negative forces such as rising inequality, pressure on natural resources and the environment, and a diminution of trust in public authorities.